Multiple Choice
Which relationship involves asymmetric information
A) An employee knows more than his employer knows about his work effort.
B) A lender knows more than the borrower about his ability to repay the loan.
C) The buyer of a 30-year-old house knows more than the seller about the condition of the house.
D) A consumer knows more about a product than the employee who assembled it.
Correct Answer:
Verified
Correct Answer:
Verified
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