An Example of the ________ Problem Would Be If Brian

question 23

Multiple Choice

An example of the ________ problem would be if Brian borrowed money from Sean in order to purchase a used car and instead took a trip to Atlantic City using those funds.

• A)moral hazard
• B)adverse selection
• C)costly state verification
• D)agency

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Definitions:

Negligence

Neglecting to uphold the level of care that a reasonably careful individual would have maintained under comparable circumstances, resulting in injury or damage.

Criminal Action

Legal proceedings taken against an individual or entity accused of violating the law, aiming to enforce social control and administer justice.

Med-Arb

A type of dispute resolution process in which both parties agree to start out in mediation and, if unsuccessful, to move on to arbitration.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties to reach a mutual agreement.