This question deals with moral hazard.

a. Explain what moral hazard isand why and how it occurs in used car markets.

b. Explain how the current U.S. Government student loan program is afflicted by moral hazard.

c. Explain why there is moral hazard attached to working with someone to fashion an answer for one of the weekly problems.

d. What usually is the best way for either buyer or seller to deal with moral hazard?