The Significant Difference Between Adverse Selection Problems and Moral Hazard

Multiple Choice

The significant difference between adverse selection problems and moral hazard problems is

A) that adverse selection refers to bad luck,moral hazard refers to bad behaviors.
B) that adverse selection applies to markets for goods,moral hazard applies to markets for services.
C) only identifiable after an action has been taken.
D) that in adverse selection one group of people starts out at a higher risk,while in moral hazard problems,people incur additional risks.