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ID: 1154046 • Letter: V
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View History Bookmarks Window Help canvas.highline.edu D Question 33 2.5 pts nformational asymmetry is a difference in O efficiency O equality. relevant knowledge. Osignaling. D Question 34 2.5 pts Moral hazard occurs when an employer closely monitors an employee. O two people consider a trade with each other and one person has relevant information about some aspect of the product's quality that the other person lacks. an employee lacks an incentive to promote the best interests of the employer, and the employer cannot observe the actions of the employee. an employee closely monitors the actions of her employer.Explanation / Answer
Answer 33: Information asymmetry is a difference in relevant knowledge. It means that it deals with the study of decision where one person has more information than the other. Option C is correct.
Answer 34 : Moral hazards occur when an employee lack an incentive to promote the best interest of the employer and the employer cannot observe the action of the employee. It means that moral hazard always arises because hidden action of employee as well as employer. Option C is correct.
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