When Consumers Have Less Information About a Product Than Do

question 307

Multiple Choice

When consumers have less information about a product than do sellers, then this is the situation of

• A) asymmetric information.
• B) rationality.
• C) caveat emptor.
• D) a market failure.

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Definitions:

Disclose

means to reveal or make known information that was previously private or secret.

Duty

Obligation required by law or morality to act or refrain from acting in a certain manner towards others.

Waiting Period

A mandatory interval of time between the initiation of an action and its actual application, such as between filing an insurance claim and receiving benefits.

Filing Date

The filing date refers to the specific day on which a document is officially submitted or recorded with a governmental or legal office.