MCQOPTIONS
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| 1. |
Jamil’s car is in need of repair, so John decides to sell it avoid the repair bill. Unaware of the problem, Shahab buys the car. This is an example of ? |
| A. | hidden actions |
| B. | adverse selection |
| C. | moral hazard |
| D. | adverse selection |
| Answer» B. adverse selection | |