Relating to the Economics in Practice on page 363: The smart phone app which allows skiers at a slope to report weather conditions to others would lessen the problem of
A) moral hazard.
B) market signaling.
C) asymmetric information.
D) risk-loving.

Question

Quizplus · Accepted Answer

The smart phone app which allows skiers to report weather conditions helps to reduce asymmetric information. Previously, skiers would only have access to the weather conditions as reported by the ski resort, which may not be entirely accurate. With this app, skiers can report the conditions they are experiencing in real-time, which helps others make better-informed decisions. This reduces the information asymmetry that can exist between the ski resort and skiers, which is a common problem in markets.

Relating to the Economics in Practice on Page 363: the Smart