What Condition(s) Must Be Satisfied in Order for an Expert

question 4

Multiple Choice

What condition(s) must be satisfied in order for an expert to give opinion testimony?

• A)The testimony has to be relevant to the issue at hand.
• B)The usefulness of the testimony must outweigh its prejudicial impact.
• C)The expert must have a college degree.
• D)both A and B

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Definitions:

Market Signals

Indicators or signs derived from market behavior that provide information or data regarding the demand or supply conditions, influencing decisions.

Adverse Selection

A situation in which one party in a transaction has more or better information compared to another, leading to an imbalance and potentially poor decision-making, often discussed in insurance markets.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another, often leading to an unfair advantage.

Moral Hazard

The risk that one party to a transaction behaves in a way that is undesirable from the other party's point of view because the latter cannot effectively control the former.