Question

The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party isa. information disparity.b. moral hazard.c. asymmetric information.d. inefficient market hypothesis.

Answer 1

Answer: The correct answer is choice c.

Explanation: Asymmetric information is the term that is used to refer to a situation in which on part to an economic transaction has less information than the other party. This term is also known as information failure.