Which term refers to a risk-taking behavior caused by cost-shifting of consequences?

Which term refers to a risk-taking behavior caused by cost-shifting of consequences?

• A. Reciprocity
• B. Committee
• C. Moral Hazard
• D. Leverage

Answer: (C)

The main idea here is moral hazard in health care and economics: when costs are shifted to someone else, people or providers may take more risks or use more services because they don’t bear the full consequences. If insurance or a third party covers the cost, a patient might opt for extra tests or procedures, skip preventive care, or engage in riskier behavior since the out-of-pocket impact is reduced. This shift changes incentives—the burden of the consequence is not on the actor, so risk-taking behavior can increase. The other terms don’t fit this pattern: reciprocity is mutual exchange, a committee is a group that makes decisions, and leverage refers to power or influence, not the behavioral change caused by cost-sharing.

The main idea here is moral hazard in health care and economics: when costs are shifted to someone else, people or providers may take more risks or use more services because they don’t bear the full consequences. If insurance or a third party covers the cost, a patient might opt for extra tests or procedures, skip preventive care, or engage in riskier behavior since the out-of-pocket impact is reduced. This shift changes incentives—the burden of the consequence is not on the actor, so risk-taking behavior can increase. The other terms don’t fit this pattern: reciprocity is mutual exchange, a committee is a group that makes decisions, and leverage refers to power or influence, not the behavioral change caused by cost-sharing.