A Person with Panic Disorder

question 106

Multiple Choice

A person with panic disorder

• A) can function normally in feared situations as long as someone he trusts is with him.
• B) will eventually have agoraphobia.
• C) will develop the disorder in her early teenage years.
• D) is not alone as approximately 2% of Canadians experience them.

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Definitions:

Moral Hazard

A situation in which one party engages in risky behavior or lacks incentive to guard against risk because another party bears the consequences.

Adverse Selection

A phenomenon where parties at a disadvantage due to asymmetric information are selected against in a market transaction, often leading to market failure.

Unobservable Actions

Actions taken by individuals or entities that cannot be seen or measured directly, often inferring effects through outcomes or reports.

Moral Hazard

A situation in economic transactions where one party is willing to take risks because the negative consequences of the risk will be borne by another party.