Which of the Following Statements Is Not Correct

question 95

Multiple Choice

Which of the following statements is not correct?

• A)Information plays an important role in the economy.
• B)Asymmetric information may lead to the disappearance of a market.
• C)It is always desirable for a person to have more information than the person he is trading with.
• D)Adverse selection will not occur if there is no asymmetric information.

---

Definitions:

Trade Secret

Information that is not known to the public, confers a business advantage over competitors, and is subject to reasonable steps to keep it confidential.

Patent

A legal right granted by the government to an inventor, giving them the exclusive right to make, use, and sell their invention for a certain period of time.

Special Damages

Damages that are specific and quantifiable losses suffered by a plaintiff, typically economic losses such as lost earnings or medical bills.

Injurious Falsehood

A false statement that is intentionally or negligently made and causes damage to another's reputation, business, or property rights.