quality of various players as the store salesperson O Car Fa

quality of various players as the store salesperson. O Car Fax allows car buyers to obtain used-vehicle histories providing them with the same information as the dealership salesperson. O The batter in a baseball game must guess whether the pitcher is going to throw a fastball, curveball, or change-up. Question 36 2.5 pts Moral hazard occurs when an employer closely monitors an employee. two people consider a trade with each other and one person has relevant information about some aspect of the product\'s quality that the other person lacks. O O an employee lacks an incentive to promote the best interests of the employer, and the employer cannot observe the actions of the employee. an employee closely monitors the actions of her employer. DQuestion 37 2.5 pts In economics, a difference in access to relevant knowledge is called a(n)

Solution

36. Option 3. an employee lacks an incentive to promote the best interests of the employer and the employer cannot observe the actions of the employee.

Explanation: In the case of a moral hazard, a party does not have the interest to act in the interest of another party or a party has an added incentive to work against the interest of another party.