An Important Type of Information Asymmetry Is

question 73

Multiple Choice

An important type of information asymmetry is:

• A)adverse selection.
• B)ethical constraint.
• C)advantage imbalance.
• D)information hazard.

---

Definitions:

Nonrelatives

Individuals who are not part of one's family by birth, marriage, or adoption.

Common-Law Marriage

A marriage-like relationship that is recognized by law after partners live together for a certain period of time and present themselves as a married couple, without a formal ceremony.

Blood Tests

Laboratory analyses performed on a blood sample to evaluate general state of health, detect infections, or diagnose diseases.

Living Together

The situation in which two or more people, not necessarily related by blood, marriage, or legal ties, share a household and living arrangements.