When a party to a transaction lacks relevant information:
A) other parties will voluntarily share this information truthfully.
B) they will not make the deal without complete information.
C) they sometimes seek out information in ways that are not obvious.
D) they always make the deal blindly.

Question

Quizplus · Accepted Answer

When a party lacks relevant information, they may try to seek out that information through less obvious means, such as conducting research, asking questions, or getting advice from a third party. This is known as information asymmetry, where one party has more information than the other. Option A may not always be true because parties may not voluntarily share information, and option B is not always practical because parties may still make the deal despite not having complete information. Option D is too absolute and may not always be the case.

When a Party to a Transaction Lacks Relevant Information