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 ?

Related Mcqs:

Which of the following is an example of a signal that is used to reveal private information ?

A. Enzo carefully chooses a special gift for Josephine B. Josephine earns her MBA from the Harvard Business School C. Lexus advertises its cars during the football World Cup Final. D. All of these answers are correct...

Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?

A. They pay employees with delayed compensation such as a year-end bonus B. They buy life insurance on their workers C. They pay above equilibrium wages D. They put hidden video cameras in the workplace...

Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ?

A. It must be “as seen on TV” B. It must be free to the signaling party C. It must be costly to the signaling party but less costly to the party with higher-quality product D. It must be applied to an inexpensive product...

Which of the following best demonstrates the problem of moral hazard ?

A. Josephine doesn’t buy health insurance because it is too expensive, and she is healthy B. A life insurance company forces Enzo to have a medical examination prior to selling him insurance C. Enzo drives more recklessly after he buys car insurance D. Fatima chooses to attend a well-respected college...

Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?

A. Rs20,000; Rs20,000; Rs22,000 B. Rs1,000; Rs14,333; Rs1,000 C. Rs20,000; Rs13,100; Rs1,000 D. Rs1,000; Rs20,000; Rs22,000...