What Are the Two Basic Problems Involving Asymmetric Information

question 1

Multiple Choice

What are the two basic problems involving asymmetric information

• A)moral dilemma and inverse-risk selection
• B)moral dilemma and adverse selection
• C)moral hazard and inverse-risk selection
• D)moral hazard and adverse selection

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Definitions:

Deteriorate

To become worse or diminish in quality, value, or strength.

Public Property

Assets owned by governmental entities that are meant for public use and benefit, such as parks, roads, and public buildings.

Government

is the system or group of people governing an organized community, generally a state, setting policies and exercising executive power.

Private Property

Land or belongings owned by individuals or companies, not by the government or the public.