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Author Question: You own a car dealership and pay all of your sales people a flat salary. As a result, they don't ... (Read 162 times)

jessicacav

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Question 1

Warranties, education, extracurricular activities are all examples of


◦ market signals.
◦ risk premiums.
◦ tools that can correct the moral hazard problem.
◦ incentives.

Question 2

You own a car dealership and pay all of your sales people a flat salary. As a result, they don't work very hard to generate sales. This is an example of


◦ adverse selection.
◦ moral hazard.
◦ logrolling.
◦ an externality.


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Marked as best answer by jessicacav on Apr 19, 2019

Kaytorgator

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