An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
A. statistical discrimination.
B. mandating that information be shared.
C. proofing.
D. All of these are ways to solve information asymmetry.
A. statistical discrimination.
You might also like to view...
Price cap regulation involves
A) setting the monopoly's price equal to its average total cost. B) setting the monopoly's price equal to its profit-maximizing price. C) setting a maximum price the monopoly may charge. D) assuming a natural monopoly will not charge a higher than profit-maximizing price. E) setting the monopoly's price equal to its marginal cost.
A tax on polluting firms
A. would shift the LRAC curve upward. B. would shift the LRAC curve downward. C. would have the same impact on the firm as a subsidy. D. tends to have the perverse effect of increasing pollution.
What is an important difference between certificates of deposits (CDs) worth less than $100,000 compared to those worth $100,000 or more?
What will be an ideal response?
Government debt is different from individual debt because
A) the government can always tax to reduce it. B) the government cannot declare bankruptcy. C) the government does not need to pay interest. D) the government can decide the interest rate.