A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:
A) statistical discrimination.
B) screening.
C) disclosure laws.
D) building a reputation.

Question

Quizplus · Accepted Answer

Disclosure laws require businesses to disclose certain information to consumers, which can help to reduce information asymmetry. For example, car dealerships are required to disclose information about a car's history, including any accidents or damage. This information helps consumers make more informed purchasing decisions and reduces the likelihood of them being taken advantage of by a seller who has more information about the product.

A Way in Which Government Can Attempt to Solve the Problems