In a Multi-Tiered Network

question 37

Multiple Choice

In a multi-tiered network:

• A)the work of the entire network is centralized.
• B)the work of the entire network is balanced over several levels of servers.
• C)processing is split between clients and servers.
• D)processing is handled by multiple,geographically-remote clients.
• E)processing is located in the cloud.

---

Definitions:

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been concluded.

Adverse Selection

A situation where sellers have information that buyers do not, or vice versa, often resulting in a market failure.

Market Signals

Indicators or signs derived from market behavior that provide information or data regarding the demand or supply conditions, influencing decisions.

Adverse Selection

A situation in which one party in a transaction has more or better information compared to another, leading to an imbalance and potentially poor decision-making, often discussed in insurance markets.