Author Question: Which of the following statements about asymmetric information is true? (Read 22 times)

CQXA · **on:** Apr 19, 2019

Question 1

Relating to the
Economics in Practice on page 360: The smart phone app which allows skiers at a slope to report weather conditions to others would lessen the problem of

◦ moral hazard.
◦ market signaling.
◦ asymmetric information.
◦ risk-loving.

Question 2

Which of the following statements about asymmetric information is
true?

◦ Asymmetric information occurs when one party to a transaction has relevant information to the transaction that the other party does not have.
◦ Asymmetric information reduces market failures because it makes it easier for individuals to engage in transactions that in the presence of perfect information would take place.
◦ Asymmetric information can only be solved through government intervention.
◦ Asymmetric information occurs only in the market for used cars and in the insurance market.

missalyssa26 · **Reply #1 on:** Apr 19, 2019

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