3033EconomicsMedium
Which of the following is an example of moral hazard?
AAfter Gull buys fire insurance, he begins to smoke cigarettes in bed.
BMahmood has been feeling poorly lately so he seeks health insurance
CNone of these answers demonstrate moral hazard
DAll of these answers demonstrate moral hazard
Correct answer
A. After Gull buys fire insurance, he begins to smoke cigarettes in bed.
Explanation
The correct answer is After Gull buys fire insurance, he begins to smoke cigarettes in bed..