Consider the following two situations. irene accepts a job where she will be driving in dangerous traffic, so she seeks auto insurance. after victor buys health insurance, he visits the gym less frequently. which of these person's actions illustrates moral hazard?
a. irene's but not victor's
b. both irene's and victor's
c. victor's but not irene's
d. neither victor's nor irene's

A) Irene´s but not Victor´s

Explanation:

Moral Hazard is an economic concept (Adam Smith) that describes certain situations in which one of the actors is aware of the negative consequences of his/her actions, but the other individuals involved the same scenario are not, being the last one´s in possible harm due to the first one´s actions.

If there´s an accident bewteen Irene and, let´s say Luis, and Luis has no               auto insurance, then Luis will be suffering more than Irene, even though he   wasnt the one fast driving. Irene´s action illustrate what moral hazard is.

omg wow lol

explanation: