Lightweight personal locator beacons are now available to hikers, making it easier for the Forest Service's rescue teams to locate those lost or in trouble in the wilderness.
True or False: Forest Service costs will likely rise due to moral hazard.
Ans:
Availability of lightweight personal locator creates a moral hazard.Due to this locator more people will will take risks going into the Forest.Since hikers have locators, they will excercise less careless considering that if something happens then they can use their locator to be found.
The increase in the number of people coming to forest for hiking will require forest services to have more employees and be more alert.This will lead to increase in cost for Forest Services.
True : Forest Service costs will likely rise due to moral hazard.
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