In an Experiment, There Is ____________________ If a Cause-Effect Relationship

question 232

Short Answer

In an experiment, there is ____________________ if a cause-effect relationship can be determined.

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Definitions:

Moral Hazard

The tendency of individuals or institutions to take on more risk when they know that they will not have to bear the full consequences of their actions.

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to participate in agreements or contracts, to the detriment of one party.

Moral Hazard

The situation where one party is more likely to take risks because another party bears the consequences.

Incentives

Rewards or penalties that motivate individuals or entities to act in certain ways.