Private Information Is a Situation in Which

question 5

Multiple Choice

Private information is a situation in which

• A) two parties to an exchange have information that is available to outsiders if they ask.
• B) one party to an exchange has information that is not available to the other.
• C) the marginal cost of a person's obtaining additional information is zero.
• D) the marginal cost of making information available to one more person is zero.
• E) outsiders have relevant information that is not available to the people in the market.

---

Definitions:

Activated Need

A requirement or desire that has been triggered or awakened, motivating an individual to take action to fulfill it.

Two-Factor Theory

A psychological theory proposing that employee satisfaction and dissatisfaction are influenced by two independent sets of factors: hygiene and motivators.

Satisfier Factor

An aspect of work that can cause satisfaction if present, based on Herzberg's two-factor theory of motivation.

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.