While teaching the concepts of asymmetric information, a professor asked his students for examples of adverse selection

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While teaching the concepts of asymmetric information, a professor asked his students for examples of adverse selection or moral hazard in marriage. One of the students, who happened to be married, replied: "Your spouse doesn't bring you flowers anymore!" Would the student's reply be an example of adverse selection or moral hazard? Briefly explain.
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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