Adverse selection and moral hazard are examples of:
A)transaction costs
B)information cost
C)symmetric information
D)financial market efficiency

Name: Adverse selection and moral hazard are examples of: A)transaction costs B)information cost C)symmetric information D)financial market efficiency
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Question

Quizplus · Accepted Answer

Adverse selection and moral hazard are problems that arise due to information asymmetry, which is a type of information cost where one party has more or better information than the other in a transaction.

Adverse Selection and Moral Hazard Are Examples Of