When One Party to a Transaction Has Incentives to Engage

question 23

Multiple Choice

When one party to a transaction has incentives to engage in activities detrimental to the other party,there exists a problem of

• A)moral hazard.
• B)split incentives.
• C)ex ante shirking.
• D)pre-contractual opportunism.

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Definitions:

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A female child of African descent born or living in the United States, with cultural ties to both Africa and the American experience.

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A chronic disorder characterized by compulsive engagement in rewarding stimuli, despite adverse consequences, leading to significant impairment or distress.