Government Action in Cases of Asymmetric Information May Not Be

question 133

Multiple Choice

Government action in cases of asymmetric information may not be an ideal solution because

• A)the private market can sometimes deal with information asymmetries on its own.
• B)the government tends to have more information than private parties.
• C)both (a) and (b).
• D)None of the above is correct.

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Definitions:

Emphysema

A chronic lung disease characterized by overdistension of the alveolar sacs and inability to exchange oxygen and carbon dioxide.

Cyanosis

A bluish discoloration of the skin and mucous membranes due to insufficient oxygen in the blood.

Barrel Chest

A chest shape characterized by an increased front-to-back diameter, often associated with emphysema or chronic obstructive pulmonary disease (COPD).

High-Risk Group

A category of individuals who, due to specific characteristics or behaviors, have a significantly higher chance of developing a particular disease or injury than the general population.