Adverse selection vs. moral hazard
Not what you're looking for?
Question: Explain differences between adverse selection and moral hazard.
use illustrative examples where appropriate.
Purchase this Solution
Solution Summary
The differences between adverse selection and moral hazard are discussed.
Solution Preview
Source:
www.duke.edu/~charvey/Classes/wpg/bfglosa.htm
money.cnn.com/services/glossary/a.html
biz.yahoo.com/f/g/
Moral hazard is a term which is based on the principle that if actors are allowed to escape the consequences of their risky actions, they are more likely to engage in reckless behavior in future. Thus it refers to the risk that a certain policy ...
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.