A situation in which the uninformed side of the market must choose from an undesirable selection of goods is an example of
A) indifferent information.
B) perfect information.
C) asymmetric information.
D) a thick market.

Question

Quizplus · Accepted Answer

This situation is an example of asymmetric information, where one party in a transaction has more or better information than the other. This often leads to adverse selection, where the uninformed side is left with a pool of undesirable choices.

A Situation in Which the Uninformed Side of the Market