Question 4 (0.34 points)

If your car is not insured, you will take great care to avoid it getting stolen. You will lock it carefully. However, if it becomes insured for its full value then if it gets stolen you do not really lose out. Therefore, you have less incentive to protect against theft. What is the social dilemma here:

Question 4 options:

	Adverse selection.
	Common Resources.
	All of the above.
	Moral Hazard.

Question 5 (0.34 points)

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A company's management might be aware that they are selling shares for more than they are actually worth, and take advantage of this asymmetrical access to information. Without the same level of knowledge, buyers may purchase the overpriced shares. What is the social dilemma here:

Question 5 options:

	All of the above
	Public Good
	Adverse Selection
	Moral hazard

Question 6 (0.33 points)

The Pareto Criteria states that:

Question 6 options:

	Society should only move away from perfect equality when the worst-off person would be better-off under inequality, relative to equality.
	The sum of their utilities is an appropriate measure of social welfare.
	If at least one person is better off and no one is worse off, then we should prefer that allocation.
	None of the above