One way to solve the problems caused by information asymmetry is:
A) surfing.
B) signaling.
C) proofing.
D) All of these are solutions to information asymmetry.

Question

Quizplus · Accepted Answer

Signaling is the best way to solve the problems caused by information asymmetry. Signaling refers to actions taken by a party with more information to reveal that information to a party with less information. This can help to reduce the amount of uncertainty and therefore reduce the negative effects of information asymmetry. Surfing is not a solution to information asymmetry, while proofing may not always be possible or feasible. Therefore, the best option is signaling.

One Way to Solve the Problems Caused by Information Asymmetry