The potential for a seller to alter behavior in an undesirable way following an economic transaction...
The potential for a seller to alter behavior in an undesirable way following an economic transaction is called:
Select one:
a. adverse selection.
b. a positive externality.
c. moral hazard.
d. a negative externality.
Homework Answers
Answer
c. moral hazard.
The moral hazard is a problem when a person is secured then he/she starts to take more risks
like, if you have theft insurance then you do not put security in society.
Add Answer to:
The potential for a seller to alter behavior in an undesirable
way following an economic transaction...
When hurricanes approach, Shamari never prepares her house, stating "I'm insured." Shamari's behavior is an example...
When hurricanes approach, Shamari never prepares her house, stating "I'm insured." Shamari's behavior is an example of Select one: a. adverse selection. b. common ownership. C. social regulation. d. private property rights. e. moral hazard. O
Adverse selection and moral hazard are two examples of: _______. A) transaction costs B) symmetric information C) inform...
Adverse selection and moral hazard are two examples of: _______. A) transaction costs B) symmetric information C) information cost D) financial market efficiency
1) A borrower who takes out a loan usually has better information about the potential returns...
1) A borrower who takes out a loan usually has better
information about the potential returns and risk of the investment
projects he plans to undertake than does the lender. This
inequality of information is called
A) moral hazard.
B) asymmetric information. C) noncollateralized risk. D)
adverse selection.
2) If bad credit risks are the ones who most actively seek
loans then financial intermediaries face the problem of
A) moral hazard.
B) adverse selection.
C) free-riding.
D) costly state verification....
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property...
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property and casualty 56. The problem of occurs when those most likely to get large insurance payoffs are the ones who want to purchase insurance the most. (a) asymmetric information (b) moral hazard (c) adverse selection (d) fraudulent behavior 57. To prevent adverse selection, health and life insurance companies may do all the following except (a) charge higher premiums to people with certain pre- existing...
Which of the following constitutes a problem after a loan is given a. moral hazard b....
Which of the following constitutes a problem after a loan is given a. moral hazard b. adverse selection c. principal agent problem d. portfolio diversification
Drop down options only low-quality sellers no sellers all types of sellers only high quality sellers...
Drop down options
only low-quality sellers
no sellers
all types of sellers
only high quality sellers
Consider a market in which there are many potential buyers and sellers of used cars. Each potential seller has one car, which is either of high quality (a plum) or low quality (a lemon). A seller with a low-quality car is willing to sell it for $3,500, whereas a seller with a high-quality car is willing to SALE sell it for $9,000. A buyer...
Which one of the following statements about positive externalities is false? A. A positive externality is...
Which one of the following statements about positive externalities is false? A. A positive externality is a positive side effect of an economic transaction that affects those not directly involved in the transaction B. Installing a solar panel produces a positive externality C. Unregulated markets produce too few of the goods and services that have positive externalities. D. Markets with positive externalities do not need government intervention to operate efficiently E. Positive externalities represent an additional benefit to society, over...
Which one of the following statements about positive externalities is false? a. A positive externality is...
Which one of the following statements about positive externalities is false? a. A positive externality is a positive side effect of an economic transaction that affects those not directly involved in the transaction. b. Unregulated markets produce too few of the goods and services that have positive externalities. c. Installing a solar panel produces a positive externality. d. Markets with positive externalities do not need government intervention to operate efficiently. e. Positive externalities represent an additional benefit to society, over...
25. In operant conditioning, punishment makes a behavior future, while reinforcement makes the behavior likely to...
25. In operant conditioning, punishment makes a behavior future, while reinforcement makes the behavior likely to occure likely to ocur in the likely to occure in the future A. more; less B. less; more C. less; equally D. equally; less 26. Mandisa always picked up her infant daughter when she screamed because she couldn't have the toy she wanted. As a result, her daughter screams doesn't get her way. In this case, picking up the infant served as a(n) screaming...
Which of the following is TRUE of market failures? Externalities and public goods are examples of...
Which of the following is TRUE of market failures? Externalities and public goods are examples of market failure. O All of the answers given are true of market failures. O When our resources are not allocated efficiently by the market, then we have market failure. Markets characterized by monopolies, oligopolies and monopolistic competition are examples of market failure. Statement 1: If left to itself, the market will produce too little of a good if there are positive externalities. Statement 2:...
When hurricanes approach, Shamari never prepares her house, stating "I'm insured." Shamari's behavior is an example of Select one: a. adverse selection. b. common ownership. C. social regulation. d. private property rights. e. moral hazard. O
1) A borrower who takes out a loan usually has better
information about the potential returns and risk of the investment
projects he plans to undertake than does the lender. This
inequality of information is called
A) moral hazard.
B) asymmetric information. C) noncollateralized risk. D)
adverse selection.
2) If bad credit risks are the ones who most actively seek
loans then financial intermediaries face the problem of
A) moral hazard.
B) adverse selection.
C) free-riding.
D) costly state verification....
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property and casualty 56. The problem of occurs when those most likely to get large insurance payoffs are the ones who want to purchase insurance the most. (a) asymmetric information (b) moral hazard (c) adverse selection (d) fraudulent behavior 57. To prevent adverse selection, health and life insurance companies may do all the following except (a) charge higher premiums to people with certain pre- existing...
Which of the following constitutes a problem after a loan is given a. moral hazard b. adverse selection c. principal agent problem d. portfolio diversification
Drop down options
only low-quality sellers
no sellers
all types of sellers
only high quality sellers
Consider a market in which there are many potential buyers and sellers of used cars. Each potential seller has one car, which is either of high quality (a plum) or low quality (a lemon). A seller with a low-quality car is willing to sell it for $3,500, whereas a seller with a high-quality car is willing to SALE sell it for $9,000. A buyer...
25. In operant conditioning, punishment makes a behavior future, while reinforcement makes the behavior likely to occure likely to ocur in the likely to occure in the future A. more; less B. less; more C. less; equally D. equally; less 26. Mandisa always picked up her infant daughter when she screamed because she couldn't have the toy she wanted. As a result, her daughter screams doesn't get her way. In this case, picking up the infant served as a(n) screaming...
Which of the following is TRUE of market failures? Externalities and public goods are examples of market failure. O All of the answers given are true of market failures. O When our resources are not allocated efficiently by the market, then we have market failure. Markets characterized by monopolies, oligopolies and monopolistic competition are examples of market failure. Statement 1: If left to itself, the market will produce too little of a good if there are positive externalities. Statement 2:...
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