Match the situation with the corresponding type of information asymmetry. ( M= Moral hazard, A= Adverse selection,

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Match the situation with the corresponding type of information asymmetry. ( M= Moral hazard, A= Adverse selection, P= principal-agent problem)

a) ______ a student studies less after professor tells the class that no one will get less than 50% on a quiz.

b) ______ a cab driver takes an out of town rider on a longer route to their destination.

c) ______ an unhealthy person buys health insurance.

d) ______ a CEO uses company funds to buy a marble bathtub.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-7300071374

3rd edition Vol. 1

Authors: Kin Lo, George Fisher

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Posted Date: Dec 14, 2018 09:32 AM

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Match the situation with the corresponding type of information asymmetry. ( M= Moral hazard, A= Adverse selection,

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Intermediate Accounting

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