The tendency for people to enter into agreements in which they ...

[mmm]

The tendency for people to enter into agreements in which they can use their private information to their own advantage and to the disadvantage of the less informed party is known as
 
  A) adverse selection
  B) moral hazard.
  C) the market for oranges.
  D) a signal.

Question 2

Tunitra consumes at a point on her budget line where her marginal rate of substitution exceeds the magnitude of the slope of her budget line. As Tunitra moves toward her consumer equilibrium point, she will move to a
 
  A) lower budget line.
  B) higher budget line.
  C) lower indifference curve.
  D) higher indifference curve.

[Jadwiga9]

Answer to Question 1

A

Answer to Question 2

D