moral hazard Synonyms

No Synonyms and anytonyms found

moral hazard Meaning

Wordnet

moral hazard (n)

(economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)

moral hazard Sentence Examples

1. The availability of insurance can create a moral hazard, encouraging individuals to engage in riskier behaviors.
2. Moral hazard occurs when one party's actions increase the risk or cost to another party without that party's consent.
3. The government's guarantee of bank deposits creates a moral hazard, incentivizing banks to take on excessive risk.
4. Moral hazard in healthcare arises when patients have limited incentives to control their medical expenses, leading to overconsumption.
5. The presence of a seatbelt law can create a moral hazard, reducing the perceived risk of driving without a seatbelt.
6. Companies operating in a regulated environment may engage in moral hazard, relying on government intervention to mitigate their losses.
7. Moral hazard can undermine the effectiveness of incentives and distort economic decision-making.
8. The principle of moral hazard is relevant in various contexts, including insurance, lending, and healthcare.
9. Addressing moral hazard often involves aligning incentives and introducing mechanisms to reduce the risk of opportunism.
10. Understanding moral hazard is crucial for policymakers and regulators to design effective policies and minimize its negative consequences.

FAQs About the word moral hazard

What is the meaning of the word moral hazard

(economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)

What are the synonyms of the word moral hazard

No synonyms found.

What are the antonyms of the word moral hazard

No antonyms found.

What is the usage of word moral hazard

The availability of insurance can create a moral hazard, encouraging individuals to engage in riskier behaviors.

Moral hazard occurs when one party's actions increase the risk or cost to another party without that party's consent.

How to use the word moral hazard in a sentence?

The government's guarantee of bank deposits creates a moral hazard, incentivizing banks to take on excessive risk.

Moral hazard in healthcare arises when patients have limited incentives to control their medical expenses, leading to overconsumption.