Supertype/subtype Relationships Should Not Be Used When the Instances of a Subtype

question 21

True/False

Supertype/subtype relationships should not be used when the instances of a subtype participate in no relationships which are unique to that subtype.

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Definitions:

Screening

Using observable information about people to make inferences about their private information; a way to reduce adverse selection.

Adverse Selection

A situation in which asymmetrical information leads buyers or sellers to make counterproductive choices, often observed in insurance markets.

Asymmetric Information

A situation in which one party in a transaction has more or better information than the other party, often leading to an imbalance in power and possibly making the transaction inefficient.

Economic Transaction

An exchange or transfer of goods, services, or funds between parties.