Which of the following is an example of incomplete information?
A)A seller losing out on profits because the market price rises above the pre-contracted price.
B)An insurer refuses to bear the complete cost of a treatment.
C)An insured car driver driving carelessly on the highway.
D)A new household appliance starts malfunctioning after two weeks.

Question

Quizplus · Accepted Answer

Incomplete information refers to situations where all parties in a transaction do not have access to all relevant information. In option A, the seller does not have complete information about future market prices when entering into a contract, leading to potential losses.

Which of the Following Is an Example of Incomplete Information