[Assess students' ability to analyze how asymmetric information—adverse selection and moral hazard—affects market outcomes in insurance and credit markets. Items will require applying basic models (pooling vs. separating equilibria, risk classification), interpreting graphs of market equilibria and welfare, and evaluating policy and contract responses (screening, signaling, deductibles, collateral, monitoring). Coverage includes impacts on pricing, coverage levels, credit rationing, default risk, efficiency losses, and the design of incentive-compatible contracts to mitigate information problems.]