2). Unemployment Insurance and Moral Hazards

a). First, explain what a moral hazard is and how it can lead to sub-optimal or inefficient market outcomes?

b). One of the concerns of the $600 per week extra unemployment money from last Spring and Summer and now the $300 additional federal unemployment insurance per week has created a moral hazard sort of problem for some workers. (this is part of why Joe Manchin wanted the number at $300, not $400 and wanted it to end at an earlier date)

Discuss what this concern might be?

Do you think this is real? And if so, how might you avoid the moral hazard concern?