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    Macroeconomics Study Set 68
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    Exam 4: Market Failures Caused by Externalities Asymmetric Information
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    A Moral Hazard Problem Occurs Before a Transaction-When People Alter
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A Moral Hazard Problem Occurs Before a Transaction-When People Alter

Question 113

Question 113

True/False

A moral hazard problem occurs before a transaction-when people alter their behavior before they
sign a contract, imposing costs on the other party.

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