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Author Question: Moral hazard occurs when buyers and sellers take actions to communicate quality in a world of uncertainty. (Read 80 times)

V@ndy87

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Question 1

Moral hazard is a situation in which asymmetric information results in high-quality goods or high-quality consumers being squeezed out of transactions because they are unable to demonstrate their quality.


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Question 2

Moral hazard occurs when buyers and sellers take actions to communicate quality in a world of uncertainty.


◦ true
◦ false


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Marked as best answer by V@ndy87 on Apr 19, 2019

jesse.fleming

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