Moral Hazard Occurs When

question 303

Multiple Choice

Moral hazard occurs when

• A)an employer closely monitors an employee.
• B)two people consider a trade with each other and one person has relevant information about some aspect of the product's quality that the other person lacks.
• C)an employee lacks an incentive to promote the best interests of the employer, and the employer cannot observe the actions of the employee.
• D)an employee closely monitors the actions of her employer.

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Definitions:

Axillae

The region under the joint where the arm connects to the shoulder.

Fractured Clavicle

A broken collarbone, a common injury that can occur from falls, sports, or accidents.

Shoulder Muscles

A group of muscles surrounding the shoulder joint, including the deltoids, rotator cuff muscles, and others, which facilitate a wide range of shoulder movements.

Allis Sign

A clinical sign used to detect hip dislocation or hip joint abnormalities, usually in newborns.