When Does the Moral Hazard Problem Arise

question 55

Multiple Choice

When does the moral hazard problem arise

• A)when an agent performs a task on behalf of a principal
• B)when a principal performs a task on behalf of an agent
• C)when a moral person trusts an immoral person to perform a task for him
• D)when an immoral person bribes a moral person to perform a task for her

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Definitions:

Necessary Reagents

Substances required to carry out a specified chemical reaction.

Organic Compound

Chemical compounds that contain carbon and hydrogen, often containing other elements like nitrogen, oxygen, sulfur, and phosphorus, essential to life.

Reaction Structure

The graphical representation of the molecular arrangement and bonds between atoms before and after a chemical reaction.

Organic Product

A compound primarily made of carbon atoms obtained as a result of an organic reaction.