Most transactions could be viewed as examples of asymmetric information since consumers typically have less information about a good or service than the producer. Because the consumer has less information than the producer, the consumer will tend to... esc O Buy the same amount of the product that they would if they had all the information. O Forgo all purchases and only buy goods and services when they have all the information about a product. Buy less of the product than they would if they had all the information. Buy more of the product than they would if they had all the information 10 F 106 6 >C C JUL 21 $ 10 3 do L átv % 5 Search or type URL A C SA MacBook Pro J & 1 * C + C 31h) W P 1 +

Which of the following is the least likely example of asymmetric information? a. King Solomon and two women who claim to be the mother of a baby b. a job applicant and a prospective employer c. an auto mechanic and a transient customer d. a retailer of used books and prospective customers

Using Freakonomics Chp. 2  Explain how such innovations as the Internet have affected the prevalence of information asymmetries.  6. Explain how information asymmetries facilitated the corporate scandals that occurred in the early 2000s.  7. Explain how the choice of terms a real estate agent uses to describe a particular property conveys additional information about the property, and hence the price a potential buyer might be able to successfully offer the seller.  8. Choose some evidence from Ch. 2 that illustrates how the combination of an information asymmetry and fear can lead to inefficient outcomes. Explain how the introduction of the element of fear makes the problem of the information asymmetry even worse.  9. Identify the evidence the authors offer to support their claim that real estate agents exploit an information asymmetry to their client’s detriment.  10. According to the voting data from the Weakest Link, which two groups of people are most likely to be discriminated…

What are three economic negatives inherent in imperfect information and what would be an alternative approach rationale for each? Thanks.