An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
A) screening.
B) mandating that information be shared.
C) proofing.
D) racial discrimination.

Question

Quizplus · Accepted Answer

Screening is an approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry. Screening involves gathering information about the other party to the transaction in order to reduce the risk of adverse selection.

An Approach That Can Be Taken by Someone Directly Involved