What type of hazard is exemplified by Lucy leaving her expensive necklace in the car's cupholder?

The scenario of Lucy leaving her expensive necklace in the car's cupholder illustrates a morale hazard. This type of hazard relates to an individual's attitude toward risk and can arise from carelessness or a lack of concern about the potential consequences of their actions. In this case, Lucy's decision to leave a valuable item in a vulnerable location demonstrates a level of indifference to the risk of theft or loss, indicating a tendency that could lead to adverse outcomes.

Morale hazards typically arise from actions that signal a disregard for safety or security, suggesting that the individual assumes that negative consequences are unlikely to impact them. In contrast to other types of hazards—like physical hazards, which pertain to tangible aspects that increase risk, or moral hazards, which involve ethical considerations about dishonest behaviors—morale hazards stem from a lack of attention to safeguarding one's possessions. Thus, Lucy's behavior exemplifies this concept by showing a casual approach that increases the risk of loss or damage.