In a television advertisement for AFLAC supplemental health insurance,an ice skater says to his skating partner,"Do you want to try a triple jump?" She responds,"Why not,I have AFLAC." This response illustrates the:

A) principal-agent problem.
B) adverse selection problem.
C) moral hazard problem.
D) free-rider problem.

The response "Why not, I have AFLAC" suggests that the skater is not worried about the potential risks or costs associated with attempting a triple jump because she has supplemental insurance to cover any accidents or injuries. This is an example of moral hazard, where individuals may take on more risk or engage in riskier behaviors because they are protected by insurance.