Moral hazard is a problem that arises:
A. before the parties have entered into an agreement.
B. after the parties have voluntarily entered into an agreement.
C. either before or after the parties have entered into an agreement.
D. rarely in any market
B. after the parties have voluntarily entered into an agreement.
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If there is an outward shift in U.S. demand for French goods, the result will be
A) a decrease in the dollar price of a euro. B) an inward shift in French demand for U.S. goods. C) a decrease in euros traded. D) an increase in the dollar price of a euro.
If virtual reality headsets are considered substitutes for game consoles, an increase in the price of virtual reality headsets would, all else equal
A) increase the demand for game consoles. B) decrease the demand for game consoles. C) increase the quantity of game consoles demanded. D) decrease the quantity of game consoles demanded.