The Two Types of Asymmetric Information Problems Are Adverse Selection

question 61

True/False

The two types of asymmetric information problems are adverse selection and moral hazard.

---

Definitions:

Qualitative Measurements

The assessment of characteristics, attributes, or properties by means of subjective judgments or observations rather than by numerical measurements.

Corporate Social Responsibility

A strategy in business that supports sustainable growth by providing economic, societal, and ecological advantages to every stakeholder involved.

Mission Statement

A brief description of a company's fundamental purpose and core values, outlining its goals and guiding its decisions.

Business Plan

A detailed document that outlines the goals of a business, the strategy for achieving them, and the time frame, as well as providing a detailed plan for its financials, management, and operations.