Private Information Is a Situation in Which

question 5

Multiple Choice

Private information is a situation in which

• A) two parties to an exchange have information that is available to outsiders if they ask.
• B) one party to an exchange has information that is not available to the other.
• C) the marginal cost of a person's obtaining additional information is zero.
• D) the marginal cost of making information available to one more person is zero.
• E) outsiders have relevant information that is not available to the people in the market.

---

Definitions:

Economic Elite

A small, privileged group positioned at the top of the economic hierarchy, possessing a significant amount of wealth and power.

Prejudice

A preconceived opinion or bias against individuals or groups without sufficient knowledge, often leading to discrimination and intolerance.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Scapegoat Theory

A social-psychological concept that suggests individuals or groups are blamed and punished for problems or issues, often unfairly, to alleviate feelings of guilt or responsibility in others.