Moral Hazard Occurs ________ an Agreement Is Made and When

question 111

Multiple Choice

Moral hazard occurs ________ an agreement is made and when monitoring the parties to the agreement is ________.

• A) before; easy
• B) before; costly
• C) after; easy
• D) after; costly

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Definitions:

DSL Modems

Devices that connect computers to the internet via telephone lines, allowing for digital data transmission.

Voice Telephones

Telecommunication devices that transmit and receive sound, most commonly voice, across distances.

Coaxial Cable

A type of electrical cable consisting of a central conductor surrounded by an insulating layer and an outer conducting shield, used for transmitting television, internet, and other data signals.

Peer-To-Peer Processing

A distributed network architecture where participants (peers) share part of their hardware resources to directly perform computing tasks without requiring central coordination.