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.
The Grants and natural selection of beak size among the medium ground finch.
Three principle forms of natural selection: (a) stabilizing selection, (b) directional selection, an
Some red squirrels adopt the offspring of related individuals, a likely example of kin selection pro
The deer mouse and the African elephant represent extremes among mammals of r versus K selection.
Natural selection of a population for dark coloration.
This chart shows the various lines of responsibility and how they differ in presidential and parliam