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
Answer:
The "Jaws of Life" is a crucial tool to fire and rescue squads to save hundreds of lives every year. ... The “Jaws of Life” is used indeterminately for pretty much any type of heavy-duty tool that acts like a pair of scissors, cutter, spreader, or ram-device aimed at slicing and dicing through most automotive metals.
Explanation:
In small intestine water is extracted from digested food.
