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Question
Harrison brings his car into a service center for its regular maintenance. After an inspection of the vehicle, a mechanic informs him that the car is in need of extensive and costly repairs. Harrison knows very little about cars, so he is not able to personally validate the mechanics claims. This is an example of
a. moral hazard.
b. misdirected incentives.
c. asymmetric information.
d. demand-cost chasm.
e. ad hominem fallacy.
Answer
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Related questions
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