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7. The problem arises that the principal can't trust the agent, so the agent has to make the principal trust it. So the agent delivers reliable information to the principal.In the job market, there is often an 'information asymmetry' between job seekers and recruiter. It is difficult for companies to judge the competency of applicants in the job market. Accurate identification takes time and money. Instead, the company uses a method of estimating the competency of applicants based on signs such as academic background and qualifications. Conversely, job seekers use signage as a sign of their abilities. Your answer 8. It is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. It is the tendency to take more risk because the person taking the risk does not pay the cost of taking the risk. A car driver may drive faster knowing that the damage on their car will be covered by the insurance company if they get in an accident. Your