Which of the Following Is an Example of Asymmetric Information

question 14

Multiple Choice

Which of the following is an example of asymmetric information leading to a "lemons" market?

• A) A marketing manager is uncertainty about the volume of sales in the next quarter.
• B) An employee does not know the rate of inflation in the coming year and so cannot ascertain his real wage.
• C) The seller of a used laptop knows more about its true condition than the buyer.
• D) A firm's manager has motives that sometimes conflict with the interests of shareholders.
• E) A trader, who has access to inside information, profits by trading on that information.

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Definitions:

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain down the length of the back, transmitting neural signals between the brain and the rest of the body.

Brain

The organ of the central nervous system in vertebrates located in the skull that is responsible for neural processing, including perception, emotions, thinking, and planning.

Native Language

The language that a person has been exposed to from birth or within the critical period of language acquisition.

Parent's Voices

Parent's Voices often refer to the collective opinions, concerns, or advocacy efforts of parents on issues affecting their children's well-being, education, or upbringing.