One difference between moral hazard and adverse selection is
a. Moral hazard has to do with unobservable characteristics of individuals
b. Adverse selection has to do with unobservable actions of individuals
c. Adverse selection occurs when individuals least appropriate for positions are most likely to apply for them
d. Adverse selection is when you choose the wrong answer on a test
c
Economics
You might also like to view...
If the Fed sells $100 million of U.S. government securities, what happens to the quantity of money?
What will be an ideal response?
Economics
When women and members of other minority groups are forced into occupations where they are unable to obtain the human capital necessary to compete for high paying jobs, it is termed as statistical discrimination
a. True b. False Indicate whether the statement is true or false
Economics