If a Buyer in an Economic Transaction Has More Information

question 13

Multiple Choice

If a buyer in an economic transaction has more information than the seller, the buyer benefits at the expense of the seller.This phenomenon is due to

• A)moral hazard.
• B)adverse selection.
• C)economically irrational behaviour.
• D)gains from trade.

---

Definitions:

Growth Hormone

A peptide hormone that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.

Triiodothyronine

A thyroid hormone, also known as T3, that plays an important role in the body's control of metabolism.

Anterior Pituitary

A part of the pituitary gland responsible for releasing hormones that regulate various bodily functions, including growth, metabolism, and reproduction.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system.