The difference between moral hazard and adverse selection is that moral hazard is about:
A. unobserved characteristics of people occurring before parties enter into an agreement.
B. never happens when adverse selection is a problem.
C. actions that arise after the parties enter an agreement
D. None of these statements is true.
C. actions that arise after the parties enter an agreement
Economics
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Standards or principles
a. norms b. values c. rules d. status quo
Economics
If Education R Us University thought that it faced an inelastic demand for the regular academic year but an elastic demand for summer school, and it wanted to increase its total tuition revenue, it would want to____ tuition in the regular academic year and ____ tuition for summer school a. Increase; increase
b. Increase; decrease. c. Decrease; increase. d. Decrease, decrease.
Economics