Karen Hires a Carpenter from a Firm Providing Carpentry Services,for

Multiple Choice

Karen hires a carpenter from a firm providing carpentry services,for remodeling the cabinets in her kitchen.She is unaware of the productivity of the carpenter who is sent by the firm.The carpenter,however,is perfectly aware of the labor hours required for the task.Which of the following problems is being faced by Karen in this situation?

A) A prisoner's dilemma
B) The asymmetric information problem
C) The moral hazard problem
D) The tragedy of commons