1) Upon buying a car with airbags, Indy begins to drive recklessly

1) Upon buying a car with airbags, Indy begins to drive recklessly. This is an example of the

1. principal-agent problem.
2. adverse selection problem.
3. moral hazard problem.
4. free-rider problem.

2. Professional buyers of antiques often have more information about the value of antique objects than do the sellers. This illustrates

1. the principal-agent problem.
2. the moral hazard problem.
3. the free-rider problem.
4. asymmetric information.

3. Upon learning that his auto transmission is about to fail, Ray Roma sells his car to an unsuspecting buyer. This circumstance illustrates the

1. adverse selection problem.
2. free-rider problem.
3. moral hazard problem.
4. principal-agent problem.