Which of the Following Is Not an Example of Asymmetric

question 62

Multiple Choice

Which of the following is not an example of asymmetric information?

• A)When someone is applying for a job, the employer checks references to determine the previous work habits of the applicant.
• B)When an employee purchases group life insurance without taking a physical exam, she knows more about her health than does the insurance company.
• C)When someone is considering buying a used car from a dealership, the dealer knows more about the true condition of the car than does the potential buyer.
• D)All of the above are examples of asymmetric information.

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Definitions:

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract, regarding their rights and responsibilities.

Mandatory Injunction

A court order requiring an individual or entity to perform a specific act.

Circumstances

The specific conditions or factors affecting a situation, event, or decision.

Court Order

An official directive issued by a court that requires a person or entity to do or refrain from doing something.