In View of the Possible Need for Government Action in Markets

Multiple Choice

In view of the possible need for government action in markets where asymmetric information is a problem, which of the following is a valid concern?

A) The government rarely has more information than the private parties.
B) Private markets can sometimes deal with information asymmetries on their own.
C) The government is itself an imperfect institution.
D) All of the above are valid concerns.