According to the US Federal Bureau of Investigation (FBI) and Department

question 36

Multiple Choice

According to the US Federal Bureau of Investigation (FBI) and Department of Homeland Security (DHS) , which of the following is a possible sign that someone is a victim of human trafficking?

• A) The person is very familiar with the neighborhood.
• B) The person lives far away from the work premises.
• C) The person often moves among various work sites.
• D) The person appears to travel alone very frequently.

---

Definitions:

Asymmetric Information

An instance where in a transaction, one entity has higher or more detailed information than another.

Principal-Agent Problem

A dilemma in economics arising when one party (the agent) is able to make decisions and/or take actions on behalf of, or that impact, another party (the principal).

Moral-Hazard Problem

A situation where one party engages in risky behavior knowing that it is protected against the consequences, often because another party bears the cost of those actions.

Moral-Hazard Problem

The moral-hazard problem arises in situations where one party's willingness to take risks is increased because the negative consequences of those risks will be borne by another party.