Economists call the situation in which one side of an economic transaction has more information than the other:
A)a negative externality.
B)a fixed cost.
C)a lack of diversification.
D)asymmetric information.

Question

Quizplus · Accepted Answer

Asymmetric information refers to a situation in which one party in a transaction has more information than the other party. This can lead to one party having an advantage over the other, potentially resulting in an inefficient outcome.

Economists Call the Situation in Which One Side of an Economic