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which is the best definition for the term moral hazard? when one side of an economic transaction has more information about the good being exchanged than the other side has when people take unwise risks when imperfect information implies that people must choose from an undesirable selection of goods when businesses pursue profit at the expense of employee well-being when people engage in hazardous activities because of a deficient moral code when consumers must decide whether to purchase goods from firms with potentially objectionable business practices when people who are not responsible for the entire costs of their actions take riskier actions than they would otherwise take

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The best definition of the term, "moral hazard" is when people who are not responsible for the entire costs of their actions take riskier actions than they would otherwise take.

What is moral hazard?

Moral hazard refers to when a person takes a riskier action that they normally would, because they would not be responsible for the cost and failure that would result from the action failing. In other words, a person engaged in moral hazard would do something risky such as driving a car recklessly because the car is not theirs and if it crashes, they won't be the ones to pay for the damage to the car.

This happens quite often in various walks of life including business. Employees might act recklessly with company money and spend in a way that they shouldn't because it is not their money. Managers might also make rash decisions about investment decisions in a company because at the end of the day, the cost of failure of investment goes to the shareholders.

Find out more on moral hazard at https://brainly.com/question/29489295

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