Final answer:
The statement is false, as asymmetric information is common in economic transactions, creating an imbalance where one party has more knowledge about the product or service quality than the other.
Step-by-step explanation:
The statement 'Information asymmetry seldom occurs' is FALSE. In the context of economic transactions, asymmetric information is a situation where one party (either the buyer or the seller) has more information about the quality or nature of the item for sale than the other.
This can create an imbalance in the transaction because the party with more information can exploit their advantage. Asymmetric information is actually quite common in markets, especially concerning products or services where the quality is not immediately apparent, such as used cars or medical services.