When a party to a transaction lacks relevant information:no transactions will take place.other parties will voluntarily share the missing information truthfully.the party lacking information will postpone the transaction until full information is obtained.the market outcome will not be efficient.
A)I and IV only
B)II and III only
C)IV only
D)III only

Question

Quizplus · Accepted Answer

When a party to a transaction lacks relevant information, it often leads to a situation where the market outcome is not efficient, due to problems like adverse selection or moral hazard.

When a Party to a Transaction Lacks Relevant Information:no Transactions