The Latin term caveat emptor, meaning "let the buyer beware," brings to mind the problem of
A)hidden actions.
B)adverse selection.
C)principals and agents.
D)moral hazard.

Question

Quizplus · Accepted Answer

Caveat emptor relates to adverse selection, where buyers may end up purchasing goods or services without full knowledge of their quality or defects, thus bearing the risk of making a poor choice.

The Latin Term Caveat Emptor, Meaning "Let the Buyer Beware