It is often cited as a contributor to the moral hazard problem, in which people behave more recklessly without consequences. Its suppliers are also subject to adverse selectio
It is often cited as a contributor to the moral hazard problem, in which people behave more recklessly without consequences. Its suppliers are also subject to adverse selection, as consumers with the greatest liability are the most likely customers. Its economic definition can be supplied by government, in such forms as welfare and legal protection against creditors. For 10 points—name this commodity which provides financial protection against risks in exchange for the payment of premiums.
It is often cited as a contributor to the moral hazard problem, in which people behave more recklessly without consequences.