Which of the Following Is an Example of Asymmetric Information

question 17

Multiple Choice

Which of the following is an example of asymmetric information?

• A) A buyer who makes a large raise in bid at an auction to discourage other bidders.
• B) A doctor who performs a large number of in-office tests and is paid per test.
• C) An elderly couple who elect a generous medical insurance policy.
• D) A board of directors that is trying to refine the compensation system for its CEO.
• E) A pitcher (about to sign with a new team) who is aware of a nagging elbow pain.

---

Definitions:

Secondary Reinforcers

Stimuli that have become reinforcing through association with primary reinforcers; they do not satisfy biological needs but often hold value, such as money or praise.

Concepts

General ideas or understandings that can be used to group together objects, events, qualities, or abstractions that are similar in some way.

Visualized

The process of forming mental visual images of objects, scenarios, or outcomes.

Stubby Tail

A short or abbreviated tail appearing notably compact or truncated compared to the usual length for the species.