Final answer:
The two informational market failures regarding education are incomplete information on job prospects and insufficient knowledge about available educational options. Adequate information is critical for individuals to make informed decisions that align with labor market demands. Markets often implement tools such as resumes and occupational licenses to mitigate the impacts of imperfect information.
Step-by-step explanation:
Informational Market Failures in Education:
The two informational market failures regarding education are B. Incomplete information on job prospects and insufficient knowledge about available educational options. These issues are crucial as they impact the decisions of potential students and workers in the job market, affecting their education and career paths.
Importance of Adequate Information:
Adequate information allows consumers to make informed decisions regarding their education and career choices. With proper knowledge of job prospects and educational opportunities, individuals can select paths that best suit their skills, interests, and the labor market demands, leading to a more efficient and productive workforce.
Mitigating Informational Market Failures:
Markets have various ways to address imperfect information. For example, in labor markets, employers may rely on resumes, recommendations, occupational licenses for certain jobs, and trial periods to mitigate the risks associated with hiring new employees. These methods help reduce the informational gaps that could lead to suboptimal hiring decisions and contribute to market failures if not properly addressed.