Adverse selection occurs when there is

A) full information.
B) unobserved behavior.
C) an unobserved characteristic.
D) a worker who shirks because his boss does not watch him.

C

Economics

You might also like to view...

Diversification is most effective in reducing:

A) market risk B) systemic risk C) idiosyncratic risk D) all forms of risk

Economics

All of the following groups benefited from immigration to the U.S. in the late 19th and early 20th century except

a. steamship companies b. mining companies c. manufacturing companies d. railroads e. All of the above benefited from immigration.

Economics