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Moral Hazard in Economics: Definition & Examples

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question 1 of 3

A moral hazard is a situation where a person or business _____.

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1. Moral hazards result when _____.

2. Which of the following statements regarding moral hazard is true?

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About This Quiz & Worksheet

Moral hazards came into being with the issuing of insurance. This quiz will ask you to define the term moral hazard and identify examples of it.

Quiz & Worksheet Goals

Use this printable worksheet and quiz to review:

  • Characteristics of a moral hazard
  • When moral hazards can occur
  • Moral hazards involving credit cards
  • Hazards involving an insured wedding ring

Skills Practiced

You'll have the chance to use these skills:

  • Interpreting information - verify you can read information regarding situational moral hazards and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about when moral hazards can occur
  • Reading comprehension - ensure that you draw the most important information from the related business lesson

Additional Learning

If you think you need more detailed information on this subject, pull up the lesson called Moral Hazard in Economics: Definition & Examples. This lesson will help you:

  • Understand the role of risks in moral hazards
  • Describe the two primary situations when moral hazards occur
  • Explain how sub-prime mortgages can be a moral hazard
  • Identify the likely consequences moral hazards in economics
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