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What Is the Difference Between Adverse Selection and Moral Hazard

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What is the difference between adverse selection and moral hazard?


Definitions:

Generalizability

The extent to which findings from a particular study or research can be applied across different settings, populations, or contexts.

Validity

The degree to which a test, tool, or research accurately measures or assesses what it claims to measure.

Causality

The principle or relationship between cause and effect, where one event (the cause) directly leads to the outcome (the effect).

Closed-ended Question

A question format that allows for a limited set of specific responses, often used in surveys and polls for easier analysis.

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