_____ occur(s) when an agent tries to exploit information advantage in a dishonest way.
A) Adverse selection
B) Moral hazard
C) Mutually beneficial trades
D) Information asymmetry

Name: _____ occur(s) when an agent tries to exploit information advantage in a dishonest way. A) Adverse selection B) Moral hazard C) Mutually beneficial trades D) Information asymmetry
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Question

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Moral hazard occurs when an agent exploits information advantage in a dishonest or risky way, often after a transaction has taken place.

_____ Occur(s) When an Agent Tries to Exploit Information Advantage