One Difference Between Moral Hazard and Adverse Selection Is

question 65

Multiple Choice

One difference between moral hazard and adverse selection is

• A)​Moral hazard has to do with unobservable characteristics of individuals
• B)Moral hazard has to do with unobservable actions of individuals
• C)Adverse selection is individuals change their behaviors because of a contract
• D)​Adverse selection is when you choose the wrong answer on a test

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Definitions:

Kinesics

The study of body motion or body behavior as a form of non-verbal communication.

Proxemics

The examination of how humans utilize space and the impact that the density of a population has on behavior, communication, and the way people interact with one another.

Izard's Theory

Carroll Izard's Differential Emotions Theory suggests that emotions are innate and that different emotions are linked with specific facial expressions.

Facial Expressions

Visually observable configurations of facial muscles that convey an individual's emotional state or reactions.