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The stress that occurs when material is pulled apart is called
Hidden Actions
Pertains to situations in principal-agent relationships where agents' specific actions are not observable by the principal, leading to a moral hazard.
Hidden Information
Information that is not known to one party in a transaction, which can lead to an imbalance of power or adverse selection.
Moral Hazard
A situation where one party is more likely to take risks because another party bears the consequences of those risks, often arising in insurance and finance contexts.
Government Bailouts
Financial support provided by the government to prevent the failure of a struggling company or industry, often to stabilize the economy and preserve jobs.
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