Moral Hazard Is a Situation Where

Multiple Choice

Moral hazard is a situation where

A) a self-interested agent has an attribute that is unknown to the principal prior to contracting
B) the principal undertakes an action at the expense of the agent
C) a self-interested agent undertakes an unobservable action at the expense of the principal and the outcome of that action contains some noise
D) both a and b
E) both b and c