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Moral hazard: Quiz


Question 1: The software development industry has specifically identified this kind of risky behavior as a management ________, but it can occur in any field.
Anti-patternDesign pattern (computer science)AntiPatternsDependency hell

Question 2: Moral hazard also arises in a ________, where one party, called an agent, acts on behalf of another party, called the principal.
LawPrincipal-agent problemEconomicsCorporate crime

Question 3: In the 2007–2008 subprime crisis, however, national credit authorities – in the U.S., the ________ – assumed the ultimate risk on behalf of the citizenry at large.
Central bankUnited States dollarFederal Reserve SystemGreat Depression

Question 4: See works by ________,[10][11][12] Tom Baker,[13] and John Nyman.
Kenneth ArrowMilton FriedmanLeonid HurwiczPaul Samuelson

Question 5: Moral hazard is a special case of ________, a situation in which one party in a transaction has more information than another.
Contract theoryEconomicsInformation asymmetryInformation economics

Question 6: When a manager is protected by someone higher in the corporate structure, such as in cases of ________ or pet projects.
Hate speechGenocideFrancophobiaNepotism

Question 7: So called "________" lending institutions can make risky loans that will pay handsomely if the investment turns out well but will be bailed out by the taxpayer if the investment turns out badly.
Federal Deposit Insurance CorporationWashington MutualFederal Reserve SystemToo Big to Fail

Question 8: In ________, moral hazard that occurs without conscious or malicious action is called morale hazard.
InsuranceLife insuranceMarine insuranceWorkers' compensation


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