A lesson of the Enron collapse is that government regulation
A) always fails.
B) can reduce but not eliminate asymmetric information.
C) increases the problem of asymmetric information.
D) should be reduced.

Question

Quizplus · Accepted Answer

The Enron collapse revealed the problem of asymmetric information between the company and its investors. While government regulation cannot completely eliminate this problem, it can reduce it through requirements for transparency and disclosure. Therefore, option B is the best choice.

A Lesson of the Enron Collapse Is That Government Regulation