Author Question: The difference between adverse selection and moral hazard is that A) moral hazard happens at the ... (Read 64 times)

CBme

  • Hero Member
  • *****
  • Posts: 548
The difference between adverse selection and moral hazard is that
 
  A) moral hazard happens at the time parties enter into a transaction; adverse selection occurs after the transaction takes place.
  B) moral hazard is the motive that is behind one party entering into a transaction with another party. Adverse selection refers to the other party being harmed by the transaction.
  C) moral hazard refers to the likelihood that a transaction will lead one party to be better off at the expense of the other party to the transaction. Adverse selection refers to the consequences of the transaction after it has occurred.
  D) adverse selection happens at the time parties enter into a transaction; moral hazard occurs after the transaction takes place.

Question 2

Refer to Table 7-6. All of the following are terms of trade that could possibly benefit both countries except
 
  A) 1/4 of a belt : 1 sword. B) 7/10 of a belt : 1 sword.
  C) 4/5 of a belt : 1 sword. D) 2/3 of a belt : 1 sword.



Benayers

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

For a complete list of videos, visit our video library