Multiple Choice
Rihanna would like a better car, and she considers selling her old one by advertising on Kijiji. She decides against it because the used cars listed on Kijiji are underpriced. This example illustrates the problem of:
A) adverse selection.
B) moral hazard.
C) positive correlation.
D) risk aversion.
Correct Answer:
Verified
Correct Answer:
Verified
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