Scenario: Edward Has Inherited a House

question 70

Multiple Choice

Scenario: Edward has inherited a house. As the house is far away from where he lives currently, it has been vacant for the past few years. A housekeeper is paid regularly to look after the house and keep it clean. However, because Edward seldom visits the house, the housekeeper does not clean the house regularly.
-Refer to the scenario above.The housekeeper's behavior is an example of ________.

• A) the moral hazard problem
• B) a positive externality
• C) the prisoners' dilemma
• D) the tragedy of the commons

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Definitions:

-al

A suffix meaning pertaining to, commonly used in the formation of adjectives from nouns.

-graphy

A suffix used in medical terminology to denote a process of recording or visualizing, usually with specialized equipment or techniques.

-ion

A suffix used in English to form nouns from verbs, indicating the action or condition of the verb.

Suffix

A suffix is a letter or group of letters added to the end of a word to change its meaning or function.