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
The need for natural resource should increase.
(Initial individuals + newborn individuals) - dead individuals = total individuals
Growth rate = (total individuals/initial individuals) * 100
Population growth rate = new percentage minus 100%
Calculations
(1000 + 500) - 200 = 1500 - 200 = 1300
Growth rate = (1300/ 1000) * 100
= 1.3 * 100
= 130%
Population growth rate = 130% - 100%
= 30% per year if it is uniform
