School market imperfections are created by asymmetric information.

Question

Quizplus · Accepted Answer

Asymmetric information refers to situations where one party in a transaction has more or better information than the other party. In the case of schools, this can lead to market imperfections such as parents not having enough information about the quality of education or teachers not having enough information about the needs of individual students. This can lead to inefficiencies in the market and may require government intervention to address.

School Market Imperfections Are Created by Asymmetric Information