Asked by Jennaia Asenati on Jul 03, 2024
Verified
Asymmetric,or private,information:
A) is an important explanation of the variation (or asymmetric performance) of individuals on standardized tests.
B) refers to personal information (e.g. ,regarding gender or ethnicity) that a person is not obligated to reveal on a job application.
C) is relevant for an economic transaction and is known only by some of the people involved in the transaction.
D) is protected by patents or copyrights.
Asymmetric Information
A situation in which one party in a transaction has more or better information than the other party, often leading to an imbalance in power and possibly making the transaction inefficient.
Economic Transaction
An exchange or transfer of goods, services, or funds between parties.
- Understand the influence of confidential data on economic choices and the effectiveness of markets.
Verified Answer
MM
Michael MartinezJul 05, 2024
Final Answer :
C
Explanation :
Asymmetric, or private, information refers to information that is relevant for an economic transaction and is known only by some of the people involved in the transaction. This can lead to one party having an advantage or disadvantage in the transaction due to their possession or lack of possession of the information.
Learning Objectives
- Understand the influence of confidential data on economic choices and the effectiveness of markets.
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