Moral Hazard Focuses On_____, While Adverse Selection Focuses on _____

Multiple Choice

Moral hazard focuses on_____, while adverse selection focuses on _____.

A) unobserved characteristics of people occurring before parties enter into an agreement; actions that arise after the parties enter an agreement
B) what can happen in the absence of information asymmetries; actions that require information asymmetry
C) actions that arise after the parties enter an agreement; unobserved characteristics of people occurring before parties enter into an agreement
D) None of these statements are true.