Question

Christine works as a receptionist in an office. She is not supposed to use the​ Wi-Fi connection provided by the company to access​ social-networking Web sites.​ However, she often uses the​ Wi-Fi to access these Web sites since her browsing activities are not monitored by her employer. This is an example of​ ________.

Answer 1

Answer:

Moral hazard

Explanation:

Moral hazard is related to taking a risk when it is in the knowledge that it is protected from the risk and the other party that is also involved will incur the cost. The moral hazard is about to change the behavior of people when they are insured about all the damages.

To improve the moral hazard is about to pay the share of the risk behavior. This occurs in marketing in car selling. When there is occur minor damage to the car but the car lender will take large lump-sum for minor damage that is the issue of moral hazard. Thus the same thing happened with Christine who used the WiFi when she was not monitored by an employer.