________ Occurs When One Party Takes Advantage of Having More

question 133

Multiple Choice

________ occurs when one party takes advantage of having more information than another party about the attributes of the good or service they will exchange.

• A)A negative externality
• B)Moral hazard
• C)A transaction cost
• D)Adverse selection

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Definitions:

Substitute

In a legal or contractual context, to replace one obligation, duty, or individual with another.

Cash

represents money in the physical form of currency, such as coins and banknotes, used to purchase goods, services, or settle debts.

Certify

To officially recognize, verify, or declare something as true, accurate, or in compliance with certain standards.

Sufficient Funds

Availability of enough money or resources to meet financial obligations or complete transactions.