Which of the Following Statements Is True

question 34

Multiple Choice

Which of the following statements is true?

• A) Adverse selection is a problem that occurs after a transaction.
• B) Moral hazard is a problem that occurs before a transaction.
• C) Adverse selection is a problem stemming from asymmetric information.
• D) Both adverse selection and moral hazard occur before a transaction.

---

Definitions:

Sodium-Potassium Pump

A vital cell membrane protein that exchanges sodium for potassium across the plasma membrane, critical for cellular functions.

Divergence

The functional arrangement of neurons in which a neuron sends signals to two or more postsynaptic neurons. Compare with convergence.

Nitric Oxide

A gas that functions as a signaling molecule in the body, playing roles in the immune system, neurological system, and regulation of blood vessels.

Carbon Monoxide

A colorless, odorless, and toxic gas produced by incomplete combustion of carbon-containing materials.