Adverse selection and moral hazard are two examples of: _______. A) transaction costs B) symmetric information C) inform...

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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

business finance

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Answer 1

Answer #1

Adverse selection and Moral Hazard refer to asymmetric info between two parties. Hence they refer to information cost - option c

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Answer 2

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Adverse selection and moral hazard are two examples of: _______. A) transaction costs B) symmetric information C) inform...

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Students often have trouble distinguishing between adverse selection and moral hazard. Both concepts are rooted in...

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Adverse selection and moral hazard are two examples of: _______. A) transaction costs B) symmetric information C) inform...