Moral Hazard

question 141

Multiple Choice

Moral hazard:

• A) always happens when adverse selection is a problem.
• B) never happens when adverse selection is a problem.
• C) can happen when adverse selection is a problem.
• D) None of these statements is true.

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Definitions:

Effectuation Theory

An entrepreneurial approach to taking quick action using resources you have available to get early traction on new ideas.

Social Entrepreneur

An individual who pursues novel applications that have the potential to solve community-based problems with an emphasis on social change.

Nobel Prize Winner

An individual awarded one of the Nobel Prizes, prestigious international accolades given annually across several categories including Peace, Literature, and various Sciences.

Muhammad Yunus

A Bangladeshi social entrepreneur, banker, economist, and civil society leader awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance.