This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When does the problem of adverse selection arise in any market?[br][br][b][color=#566D7E]Question ... (Read 92 times)

wenmo

  • Hero Member
  • *****
  • Posts: 540
on: Jun 30, 2018
When does the problem of adverse selection arise in any market?

Question 2

The CEO and stockholders are not necessarily the same people. This gives rise to
 A) upstream and downstream contracts.
  B) a principal-agent problem.
  C) complete contracts.
  D) a control over moral hazard.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

allisonblackmore

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jun 30, 2018
Answer to Question 1

The problem of adverse selection becomes prominent when a seller is unable to obtain reliable information from a number of buyers. In insurance, adverse selection can happen if high-risk persons insure themselves more heavily than low-risk persons.

Answer to Question 2

B


wenmo

  • Member
  • Posts: 540
Reply 2 on: Jun 30, 2018
Wow, this really help

atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Norway lobsters on sale at a Spanish market Norway lobsters on sale at a Spanish market
One Solution to the Nine-Dot Problem One Solution to the Nine-Dot Problem
How to solve an exponential growth problem involving bacterial growth (Question 2) How to solve an exponential growth problem involving bacterial growth (Question 2)
Four color theorem Four color theorem
this is a math question this is a math question
economic question economic question
Video: Barriers - eye structures, digestive mucosa, respiratory mucosa & genitourinary mucosa

For a complete list of videos, visit our video library