Moral hazard and adverse selection are the result of
A) poorly functioning markets.
B) government intervention.
C) private information.
D) treachery.

Question

Quizplus · Accepted Answer

Moral hazard and adverse selection arise due to private information, where one party in a transaction has more or better information than the other, leading to imbalances and inefficiencies in the market.

Moral Hazard and Adverse Selection Are the Result of