Recall the Application About the Free-Agent Market for Professional Baseball

question 368

Multiple Choice

Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s) .
-Recall the Application. The market for baseball pitchers suffers from an asymmetric information problem because

• A) the pitcher's current team has superior information concerning the health of the pitcher.
• B) the potential new teams have superior information concerning the health of the pitcher.
• C) baseball teams never sign injury-prone pitchers.
• D) a physical exam ensures that both the player's current team and potential new teams have the same information concerning the player's health.

---

Definitions:

Direct Liability Doctrine

A principle that holds an individual or entity directly responsible for their actions or omissions that cause harm or damage, without needing to rely on the actions of another party.

Vicarious Liability

Legal responsibility assigned to one party for the actions of another, typically seen in employment where the employer is liable for employees' acts.

Vehicular Homicide

A legal charge for causing the death of a person due to illegal driving of an automobile, including driving under the influence.

Criminal Record

A documented history of an individual's criminal convictions and charges, maintained by government agencies.