Which of the Following Is False

question 93

Multiple Choice

Which of the following is false?

• A) Product liability laws can make it unprofitable to sell shoddy merchandise, providing a substantial incentive to provide safe products independent of government regulations.
• B) Asymmetric information exists when the available information is initially distributed in favor of one party to a transaction relative to another.
• C) In adverse selection situations, it is rational for a seller with more information about a product to provide a truthful and complete disclosure and make that fact known to a potential buyer.
• D) Moral hazard arises from the fact that it is costly for an insurer to monitor the behaviors of the insured party.

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Definitions:

Rent

A periodic payment made by a tenant to a landlord in exchange for the use of land, a building, or another property.

Landlords

Individuals or entities that own real estate properties and rent them out to tenants, earning rental income in return.

Pierre-Joseph Proudhon

A French philosopher and politician, known for declaring "Property is theft!" and for his contributions to anarchist theory.

Koran

The holy book of Islam, considered by Muslims to be the word of God as revealed to the Prophet Muhammad.