When a Night Watchman Only Performs Two Walk-Throughs Per Night

question 7

Multiple Choice

When a night watchman only performs two walk-throughs per night when he is being paid to perform five walk-throughs per night, it is an example of

• A)both moral hazard and adverse selection.
• B)neither moral hazard nor adverse selection.
• C)moral hazard, but not adverse selection.
• D)adverse selection, but not moral hazard.

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Definitions:

Draft

An initial version of a document or plan that is subject to revision or editing.

Conclusions

the final part of something, typically a document or an event, where the main points are summarized or the outcome is revealed.

Recommendations

Suggestions or advice given based on analysis or experience, intended to guide decisions or actions.

Unique Perspective

An individual or distinct viewpoint that sets one apart from others.