Multiple Choice
________ occurs when an informed person takes an action to send information to an uninformed person,and ________ occurs when an uninformed person creates an incentive for an informed person to reveal private information.
A) Moral hazard; adverse selection
B) Adverse selection; moral hazard
C) Signaling; screening
D) Screening; signaling
E) Pooling; separating
Correct Answer:
Verified
Correct Answer:
Verified
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