Which is not an example of asymmetric information? Group of answer choices A customer not knowing which insurance plan is best A client making a purchase of a used private airplane of unknown condition A mail carrier making her deliveries An insurer not having the full information about a client’s drug use
Which is not an example of asymmetric information? Group of answer choices A customer not knowing which insurance plan is best A client making a purchase of a used private airplane of unknown condition A mail carrier making her deliveries An insurer not having the full information about a client’s drug use
Chapter17: Market Failure: Externalities, Public Goods, And Asymmetric Information
Section17.5: Asymmetric Information
Problem 2ST
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Question
Which is not an example of asymmetric information?
Group of answer choices
A customer not knowing which insurance plan is best
A client making a purchase of a used private airplane of unknown condition
A mail carrier making her deliveries
An insurer not having the full information about a client’s drug use
A tree service recommending needless pruning on fruit trees is an example of:
Group of answer choices
adverse selection.
mutually beneficial trades.
moral hazard.
a trade fallacy.
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