adverse selection problem e. e. a moral hazard problem that becomes an adverse selection problem
As the largest employer in a small town I may be more likely to take business risks because if the Show more As the largest employer in a small town I may be more likely to take business risks because if the company struggles I might expect the local government to provide financial assistance. This situation reflects which of the following? a. a principal-agent problem that becomes a moral hazard problem b. a moral hazard problem c. a principal-agent problem d. an adverse selection problem e. e. a moral hazard problem that becomes an adverse selection problem Show less
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