A situation in which one side of an economic relationship takes undesirable or costly actions that the other side of the relationship cannot observe.This kind of situation is called:

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This is the definition of moral hazard, which occurs when one party takes actions that the other party cannot observe or control, leading to negative consequences. Adverse selection refers to situations where one party has more information than the other, leading to unequal bargaining power. Thick markets refer to a market with a high number of buyers and sellers, which can lead to more efficient pricing and information sharing. An injunction is a legal order to stop a particular action.

A Situation in Which One Side of an Economic Relationship