Which of the Following Is an Example of Asymmetric Information

question 436

Multiple Choice

Which of the following is an example of asymmetric information?

• A) When someone is applying for a job, the employer checks references to determine the previous work habits of the applicant.
• B) When an employee purchases group life insurance without taking a physical exam, she knows more about her health than does the insurance company.
• C) When someone is considering buying a used car from a dealership, the potential buyer requests documentation of the repair history of the car.
• D) All of the above are correct.

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