Economics · Asymmetric Information
Match List-I (Concept) with List-II (Description): List-I: A. Moral Hazard B. Adverse Selection C. Signalling D. Screening List-II: I. Hidden action after entering contract II. Hidden information before entering contract III. Informed party reveals private information IV. Uninformed party designs mechanism to reveal information Choose the correct match:
- 1A-I, B-II, C-III, D-IV✓
- 2A-II, B-I, C-III, D-IV
- 3A-I, B-III, C-II, D-IV
- 4A-IV, B-II, C-I, D-III
Correct answer
A-I, B-II, C-III, D-IV
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