Which of the following is an example of resolving moral hazard by picking the right kind of agent?
A) Marla decides that she will work only for a boss who is known for honesty.
B) When traveling in developing countries, Evan eats at international chain restaurants rather than try local foods.
C) Hua Xing makes a complete survey of all sellers to make sure she buys from the one with the lowest price.
D) Jose's government requires truthful advertising, which gives him confidence in making purchases based on advertised claims.
Correct Answer:
Verified
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Q128: Private information is an obstacle to
A)company profitability.
B)efficient
Q129: Market forces work more efficiently when
A)adverse selection
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Q131: Describe the chain of events that occurs
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