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:

Trade Barriers

Measures imposed by governments to regulate or limit international trade, including tariffs, quotas, and import restrictions, to protect domestic industries.

Restrictions On Imports

Regulatory measures imposed by a government to control the volume or type of goods that can be brought into a country from abroad, often to protect domestic industries.

Patented Intellectual Property

Intellectual property such as inventions or processes protected by a patent, granting the patent holder exclusive rights to use and benefit from that property.

Trademarked Brand

A trademarked brand is a brand that has been legally registered or established by use as representing a company or product.