The Effective Rules of the Game, the Boundaries Between Competitive

question 155

Multiple Choice

The effective rules of the game, the boundaries between competitive and unethical behaviour, and the codes of conduct in business dealings in business activities are collectively referred to as

• A)Cultural modes and mores
• B)Societal norms
• C)Business cultures
• D)Fair trade practices

Understand the concept of asymmetric information and its implications on markets.

Distinguish between adverse selection and moral hazard in the context of economic transactions.

Identify mechanisms used to mitigate adverse selection and moral hazard in insurance markets and other scenarios.

Recognize the impact of government interventions, such as subsidies, on market behaviors and outcomes.