Match the terms below on the left with the definitions to their right. Do this by inserting into each term's response box the number associated with its correct definition. enter your response here Principal-agent problem 1. Refers to actions people take after they have entered into a transaction that make the other party to the transaction worse off. enter your response here Adverse selection 2. Results from agents pursuing their own interests rather than the interests of the principals who hired them. enter your response here Asymmetric information 3. Is the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. enter your response here Moral hazard 4. Occurs when one party to an economic transaction has less information than the other party