Information asymmetry problem related to hidden information is referred to as:
A)prisoner's dilemma.
B)principle-agent problem.
C)moral hazard.
D)adverse selection.
E)fundamental attribution error.

Question

Quizplus · Accepted Answer

Adverse selection is the term used to describe a situation where there is a problem of hidden information, leading one party to make decisions that adversely affect another party because they do not have the same information.

Information Asymmetry Problem Related to Hidden Information Is Referred to As