When a Night Watchman Only Performs Two Walk-Throughs Per Night

Multiple Choice

When a night watchman only performs two walk-throughs per night when he is being paid to perform five walk-throughs per night, it is an example of

A) both moral hazard and adverse selection.
B) neither moral hazard nor adverse selection.
C) moral hazard, but not adverse selection.
D) adverse selection, but not moral hazard.