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Author Question: If you sell your DVD player on eBay, you will be better informed about the quality of the product ... (Read 91 times)

Engineer

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If you sell your DVD player on eBay, you will be better informed about the quality of the product than any potential buyer. This is called
 
  A) adverse selection.
  B) asymmetric information.
  C) moral hazard.
  D) opportunistic behavior.

Question 2

Adverse selection can occur when
 
  A) all persons involved in a transaction have full information.
  B) one person has information not available to others.
  C) post-agreement incentives result in workers shirking.
  D) nobody has any information about a particular product.


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Jane

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