All of the Following Statements About Asymmetric Information Are True

Multiple Choice

All of the following statements about asymmetric information are true except

A) asymmetric information occurs when one party to a transaction has relevant information to the transaction that the other party does not have.
B) asymmetric information creates market failures because it makes it harder for individuals to engage in transactions that would take place in the presence of perfect information.
C) asymmetric information can only be solved through government intervention.
D) asymmetric information occurs in the market for used cars and in the insurance market.