________ Occurs When Actions Taken by One Party to a Transaction

question 52

Multiple Choice

________ occurs when actions taken by one party to a transaction are different from what the other party expected at the time of the transaction.

• A)Adverse selection
• B)Risk aversion
• C)Fraud
• D)Moral hazard

---

Definitions:

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various forms of study or training.

Regressive Nature

Describes policies or taxes that disproportionately affect lower-income individuals compared to higher-income ones.

Life Expectancy

The average period that a person may expect to live, based on statistical averages for a particular population.

Social Security Retirement System

A government program that provides retirement income to eligible retirees, funded by payroll taxes from current workers and employers.