Two Types of Asymmetric Information That Create Problems for International

question 127

Multiple Choice

Two types of asymmetric information that create problems for international investment are

• A) adverse hazard and moral selection.
• B) adverse hazard and moral hazard.
• C) adverse selection and moral hazard.
• D) adverse selection and moral selection.

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Definitions:

Unit Price

The total price of a package divided by the number of items that comprise the package.

Purchase Price

The amount of money paid to buy goods or services.

Ordering Supplies

The process of requesting and acquiring necessary materials or stock for business operations, production, or office maintenance.

Large Demand

A significant consumer interest or need for a product or service which often leads to high sales volume.