Information Asymmetries Occur When

question 118

Multiple Choice

Information asymmetries occur when:

• A) one participant in a transaction has more information than another.
• B) information isn't readily available to anyone involved in a transaction.
• C) both participants in a transaction have equal information.
• D) None of these are true.

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Definitions:

Priming

A technique in psychology used to influence a participant's response to a stimulus by exposing them to a previous stimulus.

Cognitive Facilitation

The improvement in performance of one cognitive task due to exercises or activities that stimulate cognition.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making.

Prime Numbers

Natural numbers greater than 1 that have no positive divisors other than 1 and themselves, crucial in number theory.