Which of the Following Relationships Involves Asymmetric Information

question 25

Multiple Choice

Which of the following relationships involves asymmetric information?

• A)A potential employee knows more about his skills and motivations than potential employers.
• B)The seller of a used car knows of mechanical problems that aren't easy for the average buyer to observe.
• C)A real estate agent knows the lowest price a seller is willing to sell her house for, but does not reveal it to people he shows the house.
• D)All of the above are correct.

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Definitions:

Color Line

A term that describes the division of race and the systemic inequalities and segregation between white and non-white people, originally focusing on the division between blacks and whites.

W. E. B. DuBois

An influential African-American sociologist, historian, and civil rights activist known for his contributions to the understanding of the African-American experience and the fight for equality.

Empirical Analysis

The use of observed and measured phenomena to investigate relationships and test theories.

Sociology

The study of human behavior in society.