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Which Statement Best Explains the Relationship of Moral Hazard,adverse Selection,hidden

Question 97

Multiple Choice

Which statement best explains the relationship of moral hazard,adverse selection,hidden actions,and asymmetric information


A) The moral hazard problem is a problem involving hidden actions.
B) Adverse selection is a problem involving hidden actions.
C) Adverse selection is a problem involving principals and agents.
D) Moral hazard always involves asymmetric information; asymmetric information always involves adverse selection.

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