Moral hazard:
A. always happens when adverse selection is a problem.
B. can happen when adverse selection is a problem.
C. never happens when adverse selection is a problem.
D. None of these statements is true.
Answer: B
Economics
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Bureaucratic control emphasizes which organizational element?
a. hierarchy and authority b. budget and market influences c. benchmarking statistics d. product quality assurance
Economics
In the long run, a firm can vary
A) its capital but not its labor. B) its labor but not its capital. C) both its labor and its capital. D) neither its labor nor its capital.
Economics