Asymmetric information is a situation in which
A. information possessed by one party in a transaction is not known by another party.
B. private firms have information that they choose to pass along to the government.
C. the government has information that it chooses to pass along to private firms.
D. information possessed by one party in a transaction is also known by another party.
Answer: A
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A double coincidence of wants means that
a. wanting a good means having the money to actualize that want b. goods satisfy wants as well as needs c. the goods you want are wanted by others as well d. if you want a good, you have to have something that the owner of the good wants e. if you want a good, it's strictly accidental whether the good you want will be supplied
How does the market mechanism distribute income?
Elephants are endangered, but cows are not because
a. cows are not as valuable as elephants. b. elephants are a common resource, while cows are private goods. c. cows are a common resource, while elephants are private goods. d. it is legal to kill cows but not elephants.
Converting corn into ethanol is most profitable when there is/are:
a. High ethanol prices and low corn prices b. Low ethanol prices and low corn prices c. Low ethanol prices and high corn prices d. When the amount of ethanol produced approaches the limits of the amount required in production of gasoline blended with 10% ethanol (the current "blend wall") e. Restricted expansion of ethanol production capacity