Question

Asymmetric information occurs when A. people engaging in a transaction are uncertain about future events. B. the information available to the people in a transaction is misleading or incomplete. C. everyone has the same information. D. one person in a transaction has more information than the other.

Answer 1

D. one person in a transaction has more information than the other.

Step-by-step explanation:

Asymmetric information

It is also referred to as the information failure , it occurs when one of the party during an economic transaction has more material knowledge than the other party .

For example,

When the seller of the goods and service have more knowledge than the buyer , but the reverse can also be true , i.e. , the buyer having more knowledge .

In most of the economic transaction , the information asymmetries are observed .