Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

In what circumstances could a moral hazard arise?

  • AWhen a consumer does not have full information about a product.
  • BWhen a person undertakes an activity that causes harm to another person.
  • CWhen a person undertakes a risky activity, knowing another person bears the risk.
  • DWhen the seller of a product has more information than the buyer.

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