Multiple Choice
What kind of geologic feature is shown in this photograph? 
Recognize the role of government and insurance regulations in addressing moral hazard in industries like banking and savings & loan.
Understand and apply the principal-agent framework to different business scenarios, including compensation schemes.
Distinguish between moral hazard and adverse selection problems in insurance and financial markets.
Identify strategies for addressing the principal-agent problem, including incentive structures and monitoring.
Definitions:
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