« previous next »

Author Question: Which of the following is an application of the adverse-selection problem? a. a customer driving ... (Read 75 times)

dmcintosh

  • Hero Member
  • *****
  • Posts: 517
on: Jul 1, 2018
Which of the following is an application of the adverse-selection problem?
 a. a customer driving more recklessly after buying car insurance.
  b. a teenager hanging out with friends his or her parents do not approve of.
  c. shareholders offering a high-powered incentive contract to a manager.
  d. an auto repairman claiming that the repairs are more extensive than they actually are.

Question 2

The principal is distinct from the agent in the principal-agent model because
 a. the principal offers the contract to the agent.
  b. the principal is fully informed.
  c. both a and b.
  d. neither a nor b.


k2629

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

a


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

A sod house in North Dakota, 1896. Individual “bricks” of sod were hewn from the ground and stacked A sod house in North Dakota, 1896. Individual “bricks” of sod were hewn from the ground and stacked
Step 8 is very important. Be sure that the customer’s concern has been corrected. Step 8 is very important. Be sure that the customer’s concern has been corrected.
Classification of ceramic materials on the basis of application Classification of ceramic materials on the basis of application
How to solve any percent concentration problem How to solve any percent concentration problem
Problem Problem
Problem Problem
Video: Blood Flow Through the Kidneys

For a complete list of videos, visit our video library