If producers and consumers are not fully knowledgeable about the characteristics of all products produced and consumed in the economy, the people suffer from
A) incomplete information
B) total ignorance
C) perfect information

Question

Quizplus · Accepted Answer

Incomplete information refers to not having full knowledge or understanding about the characteristics of products produced and consumed in the economy. This can lead to inefficient decision-making and potentially negative outcomes for the consumer. Total ignorance would imply a complete lack of knowledge, which is not necessarily the case in this scenario. Perfect information would mean that both producers and consumers have full knowledge of all products, which is not usually the case in real-world economies.

If Producers and Consumers Are Not Fully Knowledgeable About the Characteristics