The nutritional information now available at many fast food restaurants is an example of:
A) a failed attempt by government to reduce information asymmetry.
B) requiring the more informed party to reveal the missing information.
C) government regulation to screen out unhealthy food for consumers.
D) government requiring the restaurants to signal whether food is healthy or not.

Question

Quizplus · Accepted Answer

Requiring the more informed party (the fast food restaurant) to reveal the missing information (nutritional information) is an example of reducing information asymmetry through disclosure. This empowers consumers to make more informed decisions about their food choices. While government may play a role in mandating this disclosure, the focus is on requiring the restaurant to reveal information rather than screening out unhealthy food or signaling whether food is healthy or not.

The Nutritional Information Now Available at Many Fast Food Restaurants