In economics, a difference in access to relevant knowledge is called a(n)
A)relevancy frontier.
B)knowledge gap.
C)information asymmetry.
D)information equilibrium.

Question

Quizplus · Accepted Answer

Information asymmetry refers to a situation where one party in a transaction has more or better knowledge than the other party, leading to an imbalance in power and potentially unfair outcomes. This can occur in various contexts, from consumer-producer relationships to negotiations between firms, and can have significant economic and social consequences. The other choices are not accurate descriptions of this phenomenon.

In Economics, a Difference in Access to Relevant Knowledge Is