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what is the difference between asymmetric information, adverse selection, and moral hazard? check all that apply asymmetric information is a synonym for adverse selection, but moral hazard is a type of principal-agent problem. moral hazard is about hidden actions when people don't bear the full cost of their actions. adverse selection and moral hazard are both types of asymmetric information problems. adverse selection is about hidden characteristics, usually before a transaction has taken place.

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The difference between asymmetric information, adverse selection, and moral hazard is adverse selection and moral hazard are both types of asymmetric information problems.

What is Asymmetric information?

Asymmetric information is when one of the parties in a transaction has more information than the other party in the transaction. The party with more information has an advantage over the party with less information.

Adverse selection is a consequence of asymmetric information when when either the buyer or the seller has more information about a product and uses this information to their advantage.

Moral Hazard is a consequence of asymmetric information when  a party whose risk is insured acts in a different way than he would have acted if his risks were not insured.

To learn more about asymmetric information, please check: https://brainly.com/question/25761417

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