If workers have better information about their own ability to work than employers do, which of the following situations is present?
A) unemployment
B) asymmetric information
C) discrimination
D) moral hazard

Question

Quizplus · Accepted Answer

Asymmetric information occurs when one party has more or better information than the other party in a transaction. In this case, workers have better information about their own ability to work than employers do, which creates a situation of asymmetric information.

If Workers Have Better Information About Their Own Ability to Work