Multiple Choice
The tendency for people to behave in a riskier way or to renege on contracts when they do not face the full consequences of their actions is called:
A) moral hazard.
B) adverse selection.
C) counter information.
D) collective bargaining.
Correct Answer:

Verified
Correct Answer:
Verified
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Q133: The presence of adverse selection in a
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Q136: Adverse selection:<br>A)results from unobserved characteristics of people
Q138: Markets are more likely to be subject
Q139: An informative signal:<br>A)is costly to fake.<br>B)contains hidden
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Q142: When parties attempting to enter into an