When Information Asymmetry Is Present

question 114

Multiple Choice

When information asymmetry is present:

• A)one person knows more than another.
• B)one person is likely to use the information imbalance to his advantage.
• C)it can create inefficient markets.
• D)All of these statements are true.

---

Definitions:

Short-Term Goals

Objectives set to be achieved in a brief period, guiding immediate actions and strategies.

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, focusing on future aspirations and strategic outcomes.

Frequent Feedback

The process of giving regular, prompt responses or assessments regarding performance, behavior, or learning, aimed at improvement and development.

Goal-Setting Theory

A motivational theory that suggests setting specific and challenging goals, along with appropriate feedback, enhances performance.