Asymmetric information refers to:
A)bad information.
B)incomplete information.
C)misleading information.
D)differences in the amount of information the parties have.

Question

Quizplus · Accepted Answer

Asymmetric information is when one party in a transaction has more information than the other party. This can lead to market inefficiencies and is an important concept in economics. Options A, B, and C do not accurately describe asymmetric information. Asymmetric information refers to differences in the amount of information the parties have. This can lead to one party having an advantage over the other, often resulting in a less efficient outcome.

Asymmetric Information Refers To