Question

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

Answer 1

D

Explanation:

Asymetric information occurs when one person (in most cases the seller) in the transaction has greater knowledge about the product or service he/she is offering than the buyer or consumer.

For example, a doctor knows more about the medical terms and processes than the patient.

Above is the example of asymetric information.