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Question: Determine if the items below are examples of moral hazard or not, then place each item into the a...

Show transcribed image text Determine if the items below are examples of moral hazard or not, then place each item into the appropriate bin. A driver that speeds on a particular road after learning that the likelihood of getting a ticket there is relatively low because state troopers rarely venture that far out into their district. A bank that is less cautious about making loans when the government passes a law that states that they family will reimburse the bank if too many loans default A family that builds a home along a fault line because their homeowners insurance protects them if an earthquake occurs. A woman that decides to bungee jump because her life insurance policy will provide for her family in the event of a bungee jumping tragedy.

Determine if the items below are examples of moral hazard or not, then place each item into the appropriate bin. A driver that speeds on a particular road after learning that the likelihood of getting a ticket there is relatively low because state troopers rarely venture that far out into their district. A bank that is less cautious about making loans when the government passes a law that states that they family will reimburse the bank if too many loans default A family that builds a home along a fault line because their homeowners insurance protects them if an earthquake occurs. A woman that decides to bungee jump because her life insurance policy will provide for her family in the event of a bungee jumping tragedy.