When people or firms that are worse than average risks are most likely to enter a contract that is offered to everyone, the problem is called
A. irrational expectations.
B. adverse selection.
C. opportunity cost.
D. moral hazard.
Answer: B
Business
You might also like to view...
Laws would have no discernible meaning without the courts to interpret and apply them.
Answer the following statement true (T) or false (F)
Business
Amazon used which of the following to reduce errors in order fulfillment?
Business
The concept of "customer satisfaction" is broader than the concept of "customer experience."
Answer the following statement true (T) or false (F)
Business
Project managers should, when possible, draw comparisons to other team members when conducting individual team member reviews.
Answer the following statement true (T) or false (F)
Business