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One important difference between the concepts of moral hazard and adverse selection is that: adverse selection refers to what occurs at the time of entering
One important difference between the concepts of moral hazard and adverse selection is that:
adverse selection refers to what occurs at the time of entering into a transaction, while moral hazard refers to what happens after the transaction has been completed.
moral hazard deals with ethics in business transactions.
the two concepts cannot be applied using the same market.
adverse selection creates more potential for violence to occur.
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