Question 1 Are the following statements true or false? Provide a short justification for your answer. (Evaluations are based on your justification.) (a) In the signaling game discussed in lecture 14, a separating equilibrium always Pareto dominates a pooling equilibrium' (b) In any direct mechanism for the monopolist seller model , the optimal strategy of the buyer is always revealing the true type. (c) If an agent with present-biased preferences is fully sophisticated, he/she won't suffer from overindulgence or procrastination problems. Question 2 Provide a short answer to the following questions. Clearly state the notation and/or assump- tion in your answer. (a) Provide an example of adverse selection that is not discussed in the lecture. (b) Provide an example of moral hazard that is not discussed in the lecture