Information asymmetries are defined to be when:
A. one party to a transaction has more information that another.
B. information isn’t readily available to anyone.
C. both sides to a transaction have equal information.
D. one party withholds information from the other party.
A. one party to a transaction has more information that another.
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Economists have found that the price elasticity of demand for water is higher in the summer than in the winter. Why is this likely to be so?
A. Winter water use tends to be for necessities such as cleaning and cooking, and summer water use tends to be for both necessities and non-necessities such as gardening and recreation. B. Winter is longer than summer, and price elasticity is lower over longer time horizons. C. Summer is longer than winter, and price elasticity is higher over longer time horizons. D. People take more vacations in the summer and so use less water at home.
Is it possible for a firm to have an absolute advantage in producing something without having a comparative advantage? Why or why not?
What will be an ideal response?
Federal Reserve Banks are bankers' banks.
Answer the following statement true (T) or false (F)
The Aristocrat Corporation has taken out a loan to buy manufacturing equipment. The loan represents ________ for the company
A) an asset B) a liability C) a bond D) equity