Which of the Following Statements Is NOT Correct

question 73

Multiple Choice

Which of the following statements is NOT correct?

• A) Information plays an important role in the economy.
• B) Asymmetric information may lead to the disappearance of a market.
• C) It is always desirable to have more information than the person one is trading with.
• D) Adverse selection will not occur if there is no asymmetric information.

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Definitions:

Encoded Message

A message altered using a code or cipher so that only someone with the right key can decode and understand it.

Receiver Understands

The concept that the receiver of a message comprehends the information as intended by the sender.

Phone System

A multi-line communication system typically used in businesses for facilitating calls, voicemails, and conferencing.

Rationalization

The process of offering a logical or rational explanation for behaviors or attitudes that may otherwise appear irrational.