In View of the Possible Need for Government Action in Markets

question 12

Multiple Choice

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

• A)The government almost always has more information than the private parties.
• B)Private markets have no means of dealing with information asymmetries on their own.
• C)The government is itself an imperfect institution.
• D)Government intervention will exacerbate any market failures.

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Definitions:

Postcentral Gyrus

A region of the cerebral cortex located immediately posterior to the central sulcus, responsible for processing somatosensory information.

Precentral Gyrus

The region of the cerebral cortex located in the frontal lobe, directly involved in controlling voluntary movements.

Prefrontal Gyrus

A portion of the frontal lobe in the brain, important for higher cognitive functions such as decision-making and social behavior.

Central Sulcus

A prominent landmark of the brain, separating the frontal lobe from the parietal lobe, playing a key role in dividing areas involved in motor and sensory functions.