Frequently It Is the Case That: (1) a Worker Knows

question 23

Multiple Choice

Frequently it is the case that: (1) A worker knows more than his employer about how much effort he puts into his job, and (2) the seller of a used car knows more than the buyer about the car's condition.

• A)Neither (1) nor (2) serves as an example of asymmetric information.
• B)Both (1) and (2) serve as examples of asymmetric information.
• C)Neither (1) nor (2) serves as an example of a hidden action.
• D)Both (1) and (2) serve as examples of hidden action.

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Definitions:

Alertness

The state of being vigilant, awake, and attentive to the environment, enabling quick responses to changes or potential threats.

Content

Information or material contained within a medium, such as text, video, audio, or any other item that can be communicated.

Cognition

Encompasses all mental abilities and processes related to knowledge, understanding, reasoning, and awareness.

Blindsight

A condition in which a person can respond to visual stimuli without consciously perceiving them, typically due to damage to the primary visual cortex.