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18 December, 09:00

When one party is better informed about an economic situation than another party, economists describe the problem as one of?

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  1. 18 December, 12:06
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    In the given situation, the answer is moral hazard. A moral hazard happen when a party is involved in a situation in which the other party is likely be a result of what will happen in the outcome as there is a presence of incomplete information with both of the parties involved.
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