Which of the Following Is an Example of Asymmetric Information

question 39

Multiple Choice

Which of the following is an example of asymmetric information?

• A)A student adopting unfair means to complete his/her assignment.
• B)A commodity trader buying goods at a low price and selling them off at a high price.
• C)A builder selling houses built on property that is zoned for industrial use.
• D)A buyer paying a pre-contracted price which is lower than the current market price.

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Definitions:

Amniocentesis

A medical procedure used in prenatal diagnosis to extract amniotic fluid using a needle for genetic and chromosomal testing.

Fetal Abnormalities

Conditions that deviate from the normal development of a fetus, which can be structural, functional, or genetic.

Development

The process of growth or improvement over time, often used in context of countries, individuals, or technologies.

Low-Birth-Weight Infant

A term describing babies born with a weight of less than 2500 grams (5 pounds, 8 ounces), often due to premature birth or nutritional issues during pregnancy.