Multiple Choice
Which of the following is an example of a principal-agent problem?
A) Jordan buys a new car that seems to have more flaws than the average new car.
B) Jeff, a CEO, puts pressure on his staff to increase productivity.
C) Maria slacks off at work when her boss is on vacation.
D) Ingrid is highly risk-averse and tends to over-insure against loss.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: When a market is subject to severe
Q3: Which one of the following is NOT
Q4: The government can help solve a market
Q5: When buyers cannot judge the quality of
Q6: When a principal-agent problem occurs, the agent
Q7: Moral hazard refers to the<br>A)actions you take
Q8: The actions you take because your actions
Q9: Which of the following is NOT a
Q10: An action taken to convey private information
Q11: Jo wants to buy organic strawberries. Several