The Principle of Original Horizontality States That Each

question 163

Multiple Choice

The principle of original horizontality states that each

• A)sedimentary layer is older than the layer above.
• B)sedimentary layer is younger than the layer above.
• C)new layer of sediment is laid down nearly horizontally over older sediment.
• D)new layer of sediment is laid down accordingly.

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Definitions:

Asymmetric Information

A situation in which one party in a transaction has more or better information than the other party, often leading to an imbalance in power and possibly making the transaction inefficient.

Economic Transaction

An exchange or transfer of goods, services, or funds between parties.

Diversification

An investment strategy that involves spreading investments across various assets to reduce risk.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable risks or goods, particularly noticeable in insurance and finance markets.