When Sellers Are Unable to Distinguish "Good" Buyers from "Bad

question 94

Multiple Choice

When sellers are unable to distinguish "good" buyers from "bad" ones, they face the problem of:

• A) Moral hazard
• B) Adverse selection
• C) Externalities
• D) Diminishing utility

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Definitions:

Nucleophile

A chemical entity that provides a pair of electrons to an electrophile, thus creating a chemical bond during a reaction.

NaCN

Sodium cyanide, a highly toxic chemical compound used in the extraction of gold and silver from mineral ores.

Bromides

Ionic compounds that contain a bromine ion (Br-) combined with another element or radical.

Reactivity

A measure of how readily a substance undergoes a chemical reaction with other substances.