If an Asymmetry of Information Is Removed and Laborers' Preferences

question 20

Multiple Choice

If an asymmetry of information is removed and laborers' preferences change against employment in a labor market, it would __________ employment and __________ the wage at the equilibrium in the market.

• A)increase; raise
• B)increase; lower
• C)decrease; raise
• D)decrease; lower

---

Definitions:

Abnormal Ringing

Unusual or persistent noise heard in the ears, often referred to as tinnitus.

Blood Sugar

The concentration of glucose present in the blood, significant in the diagnosis and management of diabetes.

Aldosterone

A hormone produced in the adrenal glands that acts on the kidney. It causes the body to retain sodium and excrete potassium. Its role is to maintain blood volume and pressure.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.