Which of the Following Is a Case of Asymmetric Information

question 76

Multiple Choice

Which of the following is a case of asymmetric information:

• A) The buyer and seller of a used car don’t know how long the car will operate.
• B) A provider of health insurance does not know whether a specific client is a smoker or not.
• C) Neither you nor the insurance company has perfect information about whether a flood will occur.
• D) None of the above are examples of asymmetric information.

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Definitions:

Duodenocolic Reflexes

Reflexes that relate the function of the duodenum to the motility of the colon, aiding in digestion.

Peristalsis

A succession of wave-like contractions in muscles that push food through the digestive system.

Gallbladder

A small, pear-shaped organ located beneath the liver, which stores and concentrates bile produced by the liver.

Bile

A digestive fluid produced by the liver and stored in the gallbladder, that aids in the digestion and absorption of fats in the small intestine.