Moral hazard is most likely to arise when economic agents make highly risky strategic decisions
because they lack complete information about market conditions.
in expectation of receiving government subsidies for research and development.
knowing that the potential negative consequences of those decisions will be borne by a third party.
based solely on public interest and social welfare benefits.
45 exam-style questions on AQA A Level Economics 1.2 Individual economic decision making (A-level only), covering 1.2.1 Consumer behaviour, 1.2.2 Imperfect information, 1.2.3 Aspects of behavioural economic theory, and 1.2.4 Behavioural economics and economic policy. Each one has a worked solution and a mark scheme showing where the marks go.