In View of the Possible Need for Government Action in Markets

question 129

Multiple Choice

In view of the possible need for government action in markets where asymmetric information is a problem, which of the following is a valid concern?

• A)The government rarely has more information than the private parties.
• B)Private markets can sometimes deal with information asymmetries on their own.
• C)The government is itself an imperfect institution.
• D)All of the above are valid concerns.

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Definitions:

Hormones

Chemical messengers produced by glands in the body, transported in the bloodstream, affecting physiological activities.

Coping

The process of managing taxing circumstances, expending effort to solve life's problems, and seeking to minimize or tolerate stress or conflict.

Physiological Responding

The body's automatic reactions to stimuli, including changes in heart rate, hormone levels, and brain activity.

Maladaptive Methods

Strategies or behaviors that are ineffective or counterproductive in managing situations or meeting needs, often worsening the situation or condition.