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Mark Works as a Business Development Officer for a Leading

Question 81

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Mark works as a business development officer for a leading electronics company.His main task is to meet potential clients at their offices and set up business deals with them.Mark earns a fixed salary every month irrespective of the number of clients approached and deals made.As his boss does not cross-check the number of clients he meets in a day,Mark often does not meet all the clients that he is supposed to.His behavior is an example of ________.


A) adverse selection
B) moral hazard
C) a positive externality
D) a pecuniary externality

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