Example of moral hazard, Which of the following is an

Example of moral hazard

Assignment Help Business Economics

Reference no: EM131391919

1. Which of the following is an example of moral hazard?

Continuously bailing out firms that make poor business decisions.

Allowing individuals to buy hazard insurance policies (such as insurance against fire) on other people's houses.

Guaranteeing your stock broker that you will not fire him or her, regardless of any losses incurred.

All the above

2. With regard to income inequality, which of the following is most accurate?

Income inequality is worsening in United States and other developed nations.

Income inequality is a uniquely American phenomenon.

Income inequality occurs primarily in Asian and Latin American nations.

Income Inequality is difficult to prove.

Reference no: EM131391919

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