Examlex
How are the governor's powers restricted under the Texas Constitution of 1876? What led the framers of this constitution to take such steps to limit the executive?
Risk Aversion
The preference to avoid uncertainty and risky situations, often influencing economic and financial decisions.
Adverse Selection
The case in which an individual knows more about the way things are than other people do. Adverse selection problems can lead to market problems: private information leads buyers to expect hidden problems in items offered for sale, leading to low prices and the best items being kept off the market.
Moral Hazard
The situation that can exist when an individual knows more about his or her own actions than other people do. This leads to a distortion of incentives to take care or to expend effort when someone else bears the costs of the lack of care or effort.
Risk Aversion
The tendency to prefer certainty over uncertainty, avoiding risk in decision-making or preferring safer investments.
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