Multiple Choice
One difference between moral hazard and adverse selection is
A) Moral hazard has to do with unobservable characteristics of individuals
B) Adverse selection has to do with unobservable actions of individuals
C) Adverse selection is when individuals change their behaviors because of a contract
D) Adverse selection is when you choose the wrong answer on a test
Correct Answer:
Verified
Correct Answer:
Verified
Q59: Economists discourage homeowner bailouts because<br>A)They encourage irresponsible
Q60: Safe drivers buying "accident forgiveness" insurance tend
Q61: To keep employees from shirking,invest in greater
Q62: Moral hazard is caused by<br>A)Hidden actions<br>B)Hidden information<br>C)Both
Q63: The Department of Education noticed that for
Q65: One difference between moral hazard and adverse
Q66: For a mortgage lender that makes mortgage
Q67: Surgical weight loss procedures are cheaper and
Q68: A firm deciding to hire a secretary,bases
Q69: One difference between moral hazard and adverse