Instead of Referring to a Sample of Comments a Doctor

question 24

Multiple Choice

Instead of referring to a sample of comments a doctor has provided on her own website, I have decided instead to rely on reviews from friends who have been her patients. What type of asymmetric information problem am I trying to correct by soliciting comments from friends?

• A) diminishing returns
• B) adverse selection
• C) moral hazard
• D) principal-agent problem
• E) an adverse selection problem that became a principal-agent problem

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Definitions:

Rationality

The quality of being based on or in accordance with reason or logic; the ability to make sensible, logical decisions.

Max Weber

A German sociologist, philosopher, and political economist, whose ideas profoundly influenced social theory and social research.

Positivist Critique

A critical perspective based on the belief that information derived from logical and mathematical treatments and reports of sensory experience is the exclusive source of all authoritative knowledge.

French Revolution

A period of radical social and political upheaval in France between 1789 and 1799, which resulted in the overthrow of the monarchy, establishment of a republic, and significant changes in the country's social structure.