In the Linear Programming Version of a True Transportation Model $\ge$

question 40

Multiple Choice

In the linear programming version of a true transportation model:

• A)all constraints are \(\ge\).
• B)all constraints are \(\le\).
• C)some constraints are \(\ge\) and some are \(\le\).
• D)all constraints are =.
• E)some constraints are \(\ge\) and some are =.

Differentiate between mechanisms used for signaling versus screening.

Understand the economic implications of hiring practices and service contracts.

Understand the concept of moral hazard in the context of insurance and employment.

Distinguish between moral hazard and adverse selection.