Which of the Following Is an Example of Informational Asymmetry

question 47

Multiple Choice

Which of the following is an example of informational asymmetry?

• A)A seller of a house knows more about its true condition than does a potential buyer.
• B)A salesperson knows more about her efforts than does her manager.
• C)A child knows more about how much time he spent playing video games while he was alone in his bedroom than do his parents.
• D)All of the above are correct.

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Definitions:

Appearance

The way in which something is visually perceived or how someone looks, including aspects like clothing, grooming, and physical features.

Functioning

The way in which something operates or works; can refer to individuals, systems, or machinery.

Phobic Disorders

Psychological disorders characterized by an intense, irrational fear of specific objects, situations, or activities that pose little to no actual danger.

Extreme Anxiety

A heightened state of fear, worry, or nervousness that is significantly more intense than the typical responses to stress.