________ Occurs When an Informed Person Takes an Action to Send

question 101

Multiple Choice

________ occurs when an informed person takes an action to send information to an uninformed person,and ________ occurs when an uninformed person creates an incentive for an informed person to reveal private information.

• A) Moral hazard; adverse selection
• B) Adverse selection; moral hazard
• C) Signaling; screening
• D) Screening; signaling
• E) Pooling; separating