New York University ECON-SHU ECON-SHU COR1-GB.13 (c)Assume a factory is polluting the air in a town.Other than using a tax, the only efficient solution other is to assign property rights (e. the…
Let’s assume the professor guarantees that no one would fail the course if they didn’t hand in the exam. The policy would likely lead to what kind of problem?
a. Adverse selection
b. Moral Hazard
c. Information asymmetry
d. None of the above
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