Difference between adverse selection and moral hazard

Reference no: EM13902711

1. Explain the difference between adverse selection and moral hazard in insurance markets. Can one exist without the other?

2. Describe several ways in which sellers can convince buyers that their products are of high quality. Which methods apply to the following products: Maytag washing machines, Burger King hamburgers, large diamonds?

Reference no: EM13902711

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