When Informed Parties Prefer Trading Circumstances That Are Disadvantageous to Uninformed

question 31

Multiple Choice

When informed parties prefer trading circumstances that are disadvantageous to uninformed trading partners,economists say that ________ has occurred.

• A) information disequilibrium
• B) moral hazard
• C) signaling
• D) adverse selection

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Definitions:

Geologic Map

A map that shows the distribution, nature, and age relationships of rock units, sediments, structures, and other geologic features.

Topographic Relief

The difference in elevation of one feature relative to another; synonym: relief.

Stratigraphic Section

A vertical profile or cross-section through sedimentary rocks or soils showing the sequence and relationship of strata.

Relative Thicknesses

Refers to the comparison of thickness between different layers or sections within a geological or material context.