Multiple Choice
Which of the following relationships involves asymmetric information?
A) An employee knows more than his employer knows about his work effort.
B) A borrower knows more than the lender about his ability to repay the loan.
C) The seller of a 30-year-old house knows more than the buyer about the condition of the house.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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