A difference between moral hazard and adverse selection is that
a. moral hazard deals with pre-contractually determined public information
b. moral hazard deals with post-contractually determined private information
c. adverse selection deals with pre-contractually determined private information
d. adverse selection deals with post-contractually determined public information
b
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A market in which there are many sellers who sell differentiated products is called
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
A rival good is defined as a good for which there are substitutes
Indicate whether the statement is true or false
Figure 11-4
?
In Figure 11-4, if the cheese industry and the cracker industry have the indicated quantities of capital and labor and are on the indicated production indifference curves, is there the possibility of mutually beneficial trade in inputs? Explain.
What will be an ideal response?
At the optimal level of public goods provision, society's total willingness to pay per unit is equal to the marginal cost of producing the good.
Answer the following statement true (T) or false (F)