Adverse selection is caused by
A)Hidden actions
B)Hidden information
C)Both of the above
D)None of the above

Name: Adverse selection is caused by A)Hidden actions B)Hidden information C)Both of the above D)None of the above
Brand: Quizplus
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Question

Adverse selection is caused by​
A)​Hidden actions
B)Hidden information
C)Both of the above
D)​None of the above

Quizplus · Accepted Answer

Adverse selection is caused by hidden information. This means that one party has more information than the other party, which leads to an unfair advantage in the transaction. This can result in the selection of lower quality goods or services by the uninformed party.

Adverse Selection Is Caused By​

Adverse Selection Is Caused By