1)What is a moral hazard? Illustrate with an example

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1)What is a moral hazard? Illustrate with an example.

2)

A principal-agent problem is most likely to arise when

a. a new music school is inaugurated in a town.

b. a homeowner appoints a gardener to maintain his lawn.

c. a homemaker buys fresh fish from a local fishmonger.

d. a company outsources its tax computation to a consultancy.

e. a teenager requests his hairstylist for a new hairstyle.