Question

question 3 1 pts
when people take more risks because they know that they are protected from the costs of their actions, select creates a market failure.
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Explanation:

The described scenario, where individuals take greater risks because they are shielded from the costs of those risks, is a classic definition of a specific market failure concept. This concept occurs when one party in a transaction has reduced incentives to act carefully because the potential costs will be borne by another party (like an insurer).

Answer:

moral hazard