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tatyana61 [14]
2 years ago
10

"match the terms below on the left with the definitions to their right. do this by inserting into" ​ principal-agent problem

Biology
1 answer:
nata0808 [166]2 years ago
4 0
The principal-agent problem could be defined by saying that it is an agent who benefits from the effort of others without having even participated in the joint effort. It is a concept that is to be linked more broadly to the problems of information asymmetry.

<span>The term moral hazard refers to a type of market failure where the existence of insurance against a certain risk increases the likelihood of the occurrence of the event causing the risk.</span>

<u>The right answer is:</u>
Principal-agent problem matches with 2
Asymmetric information matches with 3
Adverse selection matches with 4
Moral hazard matches with 1
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