1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
____ [38]
3 years ago
11

6) The problem created by asymmetric information before the transaction occurs is called ________, while the problem created aft

er the transaction occurs is called ________.
Social Studies
1 answer:
IceJOKER [234]3 years ago
3 0

Answer:

Adverse selection; Moral hazard

Explanation:

Asymmetric information refers to a situation in which one person have more information about the other person while engage in a transaction.

Suppose there are a buyer and a seller in a insurance market. In this market, a buyer have more information than the insurance seller because he knows better about his health condition and how much he is involved in riskier activities. Therefore, this problem is known as adverse selection.

Moral hazard refers to a problem which occurs after the transaction has occured. It occurs when someone try to engage in riskier activities because he or she knows that other party bears the burden of cost if there is anything goes wrong.

You might be interested in
There are many roadblocks that can interfere with one pursuing a college degree. Identify five common roadblocks to college succ
timama [110]

Answer: Some of the common roadblocks to college success are:

  1. Poor time management
  2. Poor Organizational skills
  3. Money problems
  4. Family problems
  5. Confusion about choosing a major

Explanation:

Strategies to help overcome these problems include:

Poor time management: Learn to prioritize and identify what is draining your time the most. List your activities according to their importance and avoid any activity that does not add to achieving your college or life goals.

Poor Organizational skills: Use the trick above, order extra curricular  activities around your studies and make enough time for studying, don't lose track of what is important. Also, limit the time you spend on distractions.

Money problems: Plan ahead of your expenses. You can take part time jobs and save up before you need to make a purchase. If it is related to tuition fees, apply for bursaries or student loans.

Family problems: There is no way to avoid this. But if and when it does happen, find people around you who can help you get through the problems. Talk to friends, a therapist of other members of your family who you find supportive.

Confusion about choosing a major: decide to stick with one major. You will come across many discouraging moments when you are tempted to change but stick to your guns and see it through to the end.

5 0
3 years ago
What are the major reasons the agricultural revolution happened in the UK/England? *
Fudgin [204]

Answer:

Explanation:

For many years the agricultural revolution in England was thought to have occurred because of three major changes: the selective breeding of livestock; the removal of common property rights to land; and new systems of cropping, involving turnips and clover.

8 0
3 years ago
Read 2 more answers
Write 10 sentences using the conjunction for, and, nor, but, or, yet, so.
Elena-2011 [213]
I love McDonald’s but I love Chick-fil-A more. I love ice cream and chicken tenders.
7 0
3 years ago
Read 2 more answers
Which guarantee is not included in the first Amendment
jasenka [17]

Answer:

- أكثر أنواع التربة خصوبة التربة

- الحمراء .

ج- السوداء

6 0
3 years ago
Why did the Huguenots come to present-day Georgia in the 1700s
svetoff [14.1K]

Answer & Explanation:

Huguenots were French Calvinists who fled religious persecution under Louis XIV; they came to Georgia via South Carolina.

A large Huguenot community in South Carolina dates from the 1680s, and some of its members crossed into Georgia as early as the 1730s.

Lacking a French Protestant church in Georgia, Huguenots often affiliated with Anglican congregations.

John Wesley, the founder of the Methodist Church, reported visiting a French-speaking village near Savannah in 1737.

By 1745 an Anglican priest in Savannah offered to hold services in French for their benefit.

7 0
3 years ago
Read 2 more answers
Other questions:
  • When Jeanne gave her presentation to the BigDeal buying center team, she focused on answering Beverly's questions, since Beverly
    15·1 answer
  • Several of our works this week portray family relationships that are less than perfect. choose one that stood out to you as part
    5·1 answer
  • Sue would like to have a discussion with her boyfriend about where their relationship is going, but she is afraid it would threa
    12·1 answer
  • American colonial era vs. Filipino revolutionary government era
    9·1 answer
  • When are cone-shaped volcanoes created?
    9·1 answer
  • How many miles did greek sailors travel between athens and naples
    10·1 answer
  • Write a paragraph about African Americans after the Civil War using these vocabulary terms. Reconstruction, black codes, sharecr
    8·2 answers
  • A research study compared three different exercise regimens in their effectiveness in reducing systolic blood pressure in hypert
    9·1 answer
  • Where did the ghost Scrooge next? Who was the person in the bed?
    11·1 answer
  • While common sense is helpful in explaining certain events, unfortunately it does not help us:________
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!