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    Exam 14: Imperfect Information: Adverse Selection and Moral Hazard
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    A Situation in Which One Side of an Economic Relationship
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A Situation in Which One Side of an Economic Relationship

Question 89

Question 89

Multiple Choice

A situation in which one side of an economic relationship takes undesirable or costly actions that the other side of the relationship cannot observe is called


A) adverse selection.
B) moral hazard.
C) thick markets.
D) an injunction.

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