Which of the following is a reason to think that government action may not be valuable to improve market outcomes with asymmetric information?
A)The private market can sometimes deal with information asymmetries using signaling and screening.
B)The government rarely has more information than the private parties.
C)Government actions have their own imperfections.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The private market can address information asymmetries through mechanisms like signaling and screening. Additionally, the government may not always have more information than private parties, and government interventions can have their own flaws, making all options valid reasons.

Which of the Following Is a Reason to Think That