Multiple Choice
Which of the following statements is false?
A) Asymmetric information can exist both before and after a transaction.
B) Moral hazard occurs when one party to a transaction changes his or her behavior in a way that is hidden from and costly to the other party.
C) Adverse selection has the potential to eliminate some markets.
D) b and c
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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