Problems in a market are most likely to arise if:
A)all parties have complete information.
B)all parties have good enough information to make acceptable choices.
C)one party involved in a transaction knows more than another party.
D)all parties involved in a transaction lack the same information.

Question

Quizplus · Accepted Answer

Problems in a market, such as information asymmetry, are most likely to arise if one party involved in a transaction knows more than another party. This can lead to issues like adverse selection and moral hazard.

Problems in a Market Are Most Likely to Arise If