Mark works as a business development officer for a leading ...

[mrsjacobs44]

Mark works as a business development officer for a leading electronics company. His main task is to meet potential clients in their respective offices and try to enter into a business deal with them.
 
  Irrespective of the number of clients approached and deals made, Mark earns a fixed salary every month. Because his boss does not cross-check how many clients he meets in a day, Mark often does not meet all the clients that he is supposed to. His behavior is an example of ________. A) adverse selection
  B) moral hazard
  C) a positive externality
  D) a pecuniary externality

Question 2

The government of Lithasia has decided to set a minimum price for certain agricultural products in order to safeguard the interests of farmers. This is an example of a ________.
 
  A) price floor
  B) price ceiling
  C) Pigouvian tax
  D) Pigouvian subsidy

[JCABRERA33]

Answer to Question 1

B

Answer to Question 2

A

[mrsjacobs44]

Thanks for the timely response, appreciate it

[bblaney]

Excellent