Solving a moral hazard problem in a transaction would benefit
A)The seller only
B)The buyer only
C)Both the parties
D)None of the parties

Question

​Solving a moral hazard problem in a transaction would benefit
A)​The seller only
B)The buyer only
C)Both the parties
D)​None of the parties

Quizplus · Accepted Answer

Solving a moral hazard problem in a transaction would benefit both parties involved. This is because moral hazard occurs when one party has information that the other does not, leading to asymmetrical information and potentially unfair outcomes. By addressing this problem, both the buyer and seller can ensure that they are making informed decisions and that the transaction is fair and mutually beneficial.

​Solving a Moral Hazard Problem in a Transaction Would Benefit

Solving a Moral Hazard Problem in a Transaction Would Benefit