Examlex
Middle-class teachers often come to believe that poor children cannot learn,and these teachers treat them accordingly.Responding to these expectations,poor children often perform poorly in school.This situation involves a/an __________.
Adverse Selection
A situation in which one party in a transaction has more or better information compared to another, leading to an imbalance and potentially poor decision-making, often discussed in insurance markets.
Asymmetric Information
A situation in which one party in a transaction has more or superior information compared to another, often leading to an unfair advantage.
Moral Hazard
The risk that one party to a transaction behaves in a way that is undesirable from the other party's point of view because the latter cannot effectively control the former.
Asymmetric Information
A situation where one party in a transaction has more or superior information compared to another.
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