Moral Hazard-Risk of money

When you paid a friend’s entrance fee for the poker tournament and agreed to divide any winnings and then your friend played sloppily as your money is at risk, not his, and then you have suffered since of: (1) Adverse selection. (2) Fraudulent information. (3) Irrational exuberance. (4) Creative response. (5) Moral hazard.

Find out the right answer from the above options.

View Complete Question

Related Questions in Microeconomics

Q : Labor union and an unregulated public

I have a problem in economics on Labor union and an unregulated public utility. Please help me in the following question. While comparing an influential labor union and an unregulated public utility firm like cable TV, both might: (1) Be considered as the monopolists.

Q : Efficiency of monopolistic competition

Defenders of the efficiency of monopolistic competition are mainly persuasive when they insist which: (w) consumers benefit greatly from product differentiation. (x) any inefficiency is far less harmful than that of pure monopoly. (y) pure competition

Q : Competition in output and resource

The purely competitive model means that competition in both output and resource markets yields a distribution of income that is proportional to the: (w) numbers of people in specific households. (x) effort and leisure sacrificed throu

Q : Evidence of Asymmetric information Can

Can someone please help me in finding out the accurate answer from the following question. The Extensive fire damage in a neighborhood where almost everyone has fire insurance is an apparent evidence of: (1) Cost inflation in service sector. (2) Ineffective resource a

Q : Present Value of Annual Interest Rate

When the annual interest rate is 11 percent and a small office building can be expected to lease perpetually for price of $33,000 annually, the building and also the land it sits onto have a present value of approximately: (1) $363,00

Q : Negatively sloped demand curve for

The idea which harsher and more certain punishment decreases cheating on examinations recommends that: (i) Normative values must guide the positive economics. (ii) Student honesty has refused in recent years. (iii) Macroeconomic reasoning as well applies to microecono

Q : Enter an industry by barriers to entry

Barriers to entry: (w) make this complicated or impossible for new firms to profitably enter an industry. (x) uniformly violate U.S. antitrust statutes. (y) are fundamentally technological instead of economic. (z) stimulate aggressive competition.

Q : Depreciation expense The Realto Theatre

The Realto Theatre purchased a new projector costing $37,000 on January 1, 2010. Since of changing technologies, the projector is predictable to last five years after which it will be obsolete and contain a salvage value of $1,000 as a collectors item. Compute the

Q : Emerge natural monopoly by economics of

A monopoly might emerge naturally while economies of scale: (w) are small relative to market demand. (x) do not exist. (y) are large relative to market demand for output. (z) and average costs are rising over the market output range.

Q : Making investment possible in an

The group which ultimately makes investment in an economy possible is: (1) business firms. (2) households which consume less than their disposable incomes. (3) banks. (4) savings and loan associations. (5) financial tycoons.

Discover Q & A

Leading Solution Library

Avail More Than 1433844 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1925089
Asked

3,689

Active Tutors

1433844

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment