Moral hazard and adverse selection are both examples of
a. the principal-agent problem.
b. externalities in consumption.
c. efficiency in markets.
d. perfect information.
e. asymmetric information.
E
Economics
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If Bert has budget constraint A in the graph shown, what is his opportunity cost of three gallons of milk?
This graph shows three different budget constraints: A, B, and C.
A. Twelve cases of soda
B. Eight cases of soda
C. Four cases of soda
D. It is impossible to say without knowing Bert's income.
Economics
When a market consists of a few large firms and barriers to entry exist, it:
A. must be monopolistically competitive. B. is likely an oligopoly. C. is likely a monopoly. D. must be perfectly competitive.
Economics