A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:
A) statistical discrimination.
B) signaling.
C) mandating that information be shared.
D) All of these are ways the government deals with information asymmetry.

Question

Quizplus · Accepted Answer

Mandating that information be shared is the most direct way for the government to address information asymmetry. By requiring that companies disclose certain information, such as nutritional information or potential side effects of a medication, consumers are better able to make informed decisions. Statistical discrimination and signaling are mechanisms that individuals use to address information asymmetry, and while the government may play a role in regulating these mechanisms, they are not direct solutions to the problem of information asymmetry.

A Way in Which Government Can Attempt to Solve the Problems