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Which of the Following Is a Mismatched Pair

question 49

Multiple Choice

Which of the following is a mismatched pair?


Definitions:

Moral-Hazard

A situation where one party is more likely to take risks because the consequences of those risks will be felt by another party.

Principal-Agent Problem

A dilemma arising from a conflict of interest between a principal (someone who entrusts a task) and an agent (the one performing the task), where the agent may not act in the best interest of the principal.

Behavioral Asymmetry

A situation in economic or psychological contexts where individuals or entities exhibit uneven or unequal behavioral responses under similar circumstances.

Economics

The study of how society manages its scarce resources.

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