Author Question: _____ refers to the situation faced by an insurance plan whose costs steadily increase as worse ... (Read 26 times)

wenmo

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_____ refers to the situation faced by an insurance plan whose costs steadily increase as worse risks migrate toward it and better risks migrate away.
 a. Adverse selection
  b. Lemons problem
  c. Moral hazard
  d. Death spiral

Question 2

Principal-agent problems are not addressed in the market for corporate control.
  Indicate whether the statement is true or false



bpool94

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Answer to Question 1

D

Answer to Question 2

False



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bpool94

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