If Firms Have an Incentive to Hide Information from Mandatory

question 36

Multiple Choice

If firms have an incentive to hide information from mandatory disclosure because the information is proprietary,then which of the following remedies is the least intrusive way to overcome this incentive?

• A)leave it to the market
• B)separation of functions
• C)supervisory oversight
• D)socialization of information production

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period.

Equilibrium

A situation where the equilibrium between market demand and supply is reached, leading to stable prices.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market, resulting in no surplus or shortage.

Market Mechanism

Tendency in a free market for price to change until the market clears.