Exam 10: Information

When a lack of information exists for parties to a deal:

Moral hazard:

Problems are likely to arise when:

Both screening and signaling:

A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:

Adverse selection occurs in the used car market because:

The result of effective screening and signaling can be:

Filling gaps in your information by generalizing based on observable characteristics is called:

A motorist who chooses high-deductible versus low-deductible car insurance is:

One of the reasons the student loan repayment plan at Yale did not work was because:

Imbalances in information can cause problems between:

In the principal-agent problem,the agent is:

A consequence of adverse selection is:

When information asymmetry is present:

An example of a way employers can minimize moral hazard is:

It is possible to have:

A typical reason moral hazard exists in the workplace is:

The classic example used to discuss the problem of adverse selection is:

Showing up to a job interview and not knowing any information about the company it's with is an example of a:

In the principal-agent problem,the principal is: