Which of the Following About Drones Is Untrue

question 4

Multiple Choice

Which of the following about drones is untrue?

• A) They save the lives of many military personnel.
• B) Because of their mobility and their targeting effectiveness, they are efficient tools in many types of conflict.
• C) They are relatively cheap to produce.
• D) Because their pilots are thousands of miles away, they make it easy for pilots to disconnect themselves from the battlefield.

---

Definitions:

Moral Hazard

A situation in which one party engages in risky behavior knowing that it is protected against the risk by another party.

Asymmetric Information

A situation where one party in a transaction has more or superior information compared to another, often leading to an imbalance in the transaction.

Small Firms

Businesses often characterized by a small number of employees, limited market share, and possibly locally oriented markets.

Principal-Agent Problem

A situation in economics where there is a conflict of interest between a principal (such as a shareholder) and an agent of the principal (such as a manager), due to the agent having more information.