In View of the Possible Need for Government Action in Markets

question 129

Multiple Choice

In view of the possible need for government action in markets where asymmetric information is a problem, which of the following is a valid concern?

• A)The government rarely has more information than the private parties.
• B)Private markets can sometimes deal with information asymmetries on their own.
• C)The government is itself an imperfect institution.
• D)All of the above are valid concerns.

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Definitions:

Hypercoagulability

An increased tendency for the blood to clot, which can elevate the risk of thrombosis or other cardiovascular problems.

Deep Vein Thrombosis

A medical condition characterized by the formation of a blood clot within a deep vein, typically in the legs, which can lead to serious complications if left untreated.

Hypercoagulability

An increased tendency of the blood to clot, which can lead to thrombosis (blood clots) in veins or arteries.

Venous Wall Damage

Injury or degradation to the walls of veins, which can lead to conditions such as varicose veins or chronic venous insufficiency.