Explain the Differences Between Moral Hazard and Holdup

question 20

Multiple Choice

Explain the differences between moral hazard and holdup.

• A) Moral hazard arises when a party who is better informed about her actions.
• B) Holdup can occur even if information about actions is symmetric.
• C) a and b.
• D) Neither a nor b.

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Definitions:

Marxist Approach

A method of socioeconomic analysis that examines class relations and societal conflict using a materialist interpretation of historical development, based on the ideas of Karl Marx.

Rusche and Kircheimer

Theorists known for their work on the social theory related to punishment, proposing that forms of punishment change with social structures.

Severity of Punishment

The degree of harshness or intensity of a penalty imposed for wrongdoing.

Restorative Justice

A criminal justice approach focusing on the rehabilitation of offenders through reconciliation with victims and the community at large.