Politicians Have More Information Than Voters and May Not Use

question 57

Multiple Choice

Politicians have more information than voters and may not use that information in the interest of the public. This is:

• A) a mutually beneficial trade.
• B) moral hazard.
• C) adverse selection.
• D) the principal-agent problem.

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Definitions:

Voluntary Responses

Actions that are undertaken intentionally and with awareness, as opposed to automatic or reflexive reactions.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, emphasizing the idea that behaviors are influenced by their consequences.

Controlled

In psychology, referring to cognitive processes that require conscious, deliberate thought or processes that are under an individual's deliberate control.

Reinforcement

In behavioral psychology, a process by which a behavior becomes more likely to occur due to the consequence that follows it, can be positive or negative.