We Can Say That a Contract Is Able to Prevent

question 47

Multiple Choice

We can say that a contract is able to prevent moral hazard when

• A) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-averse people.
• B) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-loving people.
• C) it shifts risk to risk-loving people.
• D) it eliminates production inefficiencies due to moral hazard and shifts risk to risk-averse people.

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Definitions:

Virtual Machines

Software emulations of physical computers, allowing multiple operating systems to run on a single physical hardware host.

Dock

An area of water where ships are parked, or a platform for loading and unloading, or a support device for electronic gadgets.

Data Protection Plan

A strategic approach to ensure the privacy, confidentiality, and integrity of data through policies, procedures, and technical measures.

Chkdsk

A program that locates clusters that are disassociated from the appropriate data file.