Which of the Following Does Not Illustrate the Asymmetric Information

question 109

Multiple Choice

Which of the following does not illustrate the asymmetric information problem?

• A)Ordinary financial investors do not know the motivations of financial advisers.
• B)Ordinary customers do not know how sanitarily the food is prepared in a restaurant.
• C)Ordinary stock buyers do not know what will happen to the stock's price next week.
• D)Ordinary car buyers do not know the actual quality of the various cars in the dealer's lot.

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Definitions:

Heirs

Individuals or entities designated to receive assets upon another's death under the terms of a will or according to the laws of inheritance.

Pearl Necklace

A piece of jewelry consisting of a strand or strands of pearls.

Negligent

the failure to exercise the care that a reasonably prudent person would exercise in like circumstances, resulting in harm or damage.

High-Crime Area

A geographic location with a significantly higher rate of criminal activity compared to surrounding areas.