The Study of the Problems Due to Asymmetric Information Was

question 162

Multiple Choice

The study of the problems due to asymmetric information was begun when economists analyzed which type of market?

• A)the market for citrus fruit
• B)the market for insurance
• C)farmers' markets
• D)the market for automobiles

---

Definitions:

Ratification Manifest

The overt expression or demonstration of approval or confirmation of an act or agreement, often legally required for ratification.

Material Facts

Information that could influence the decision-making process of a person or entity, considered significant in the context of legal and financial transactions.

Apparent Authority

A legal doctrine allowing a third party to rely on the representation of an agent that they have the authority to act on behalf of a principal, even if the agent lacks actual authority.

Actual Authority

The explicit power granted by a principal to an agent to conduct specific transactions or activities on the principal's behalf.