question archive A situation in which one side of an economic relationship takes undesirable or costly actions that the other side of the relationship cannot observe is called: A

A situation in which one side of an economic relationship takes undesirable or costly actions that the other side of the relationship cannot observe is called: A

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A situation in which one side of an economic relationship takes undesirable or costly actions that the other side of the relationship cannot observe is called:

A. an injunction.

B. moral hazard.

C. thick markets.

D. adverse selection.

Option 1

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Option 2

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