Which of the following is an example of asymmetric information in which workers know their own abilities but firms do not?
A) a seasoned athlete
B) an established actor
C) a recent college graduate
D) an assistant professor
E) a high school student

Question

Quizplus · Accepted Answer

A recent college graduate would have asymmetric information as they have knowledge about their own abilities but firms do not have access to it. The other options may not necessarily have information asymmetry as their abilities may be observable or known to firms through past experience or training.

Which of the Following Is an Example of Asymmetric Information