Multiple Choice
Moral hazard results from _____ information and adverse selection results from _____ information.
A) private; private
B) private; public
C) public; private
D) public; public
E) None of the above answers are correct because both are the result of the lemons problem.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Private information is a situation in which<br>A)
Q17: "Screening" means that an auto insurance company
Q37: Bill purchases property insurance for his office
Q38: In the market for automobile insurance,moral hazard
Q45: Adverse selection is created by<br>A) incentives to
Q46: In the used car market with warranties,the
Q66: In an insurance market,moral hazard exists chiefly
Q70: In the used car market with no
Q85: Private information<br>A) can create adverse selection but
Q98: If a salesperson is paid by the