When an Individual Knows More About His or Her Own

question 72

Multiple Choice

When an individual knows more about his or her own actions than other people do, incentives are distorted, which creates:

• A)moral hazard.
• B)adverse selection.
• C)screening.
• D)signaling.

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Definitions:

Cichlid Fishes

A diverse group of fish known for their interesting behaviors, including their complex mating rituals and parental care.

Geological Strata

Layers of sedimentary rock or soil with internally consistent characteristics that distinguish them from adjacent layers.

Primitive

Referring to the early and undeveloped stage in the evolution of something.

Codiscoverer

An individual who, along with one or more others, is credited with the discovery of something.