The problem of asymmetric information is absent in the moral hazard problem.

Question

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The moral hazard problem is a form of asymmetric information where one party in a transaction has more information than the other party, leading to potentially harmful behavior by the party with less information. For example, in an insurance contract, the insured party may take greater risks because they know they are protected by the insurance policy, while the insurer may not have full information on the insured's behavior. This creates a moral hazard.

The Problem of Asymmetric Information Is Absent in the Moral