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In View of the Possible Need for Government Action in Markets

Question 12

Multiple Choice

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


A) The government almost always has more information than the private parties.
B) Private markets have no means of dealing with information asymmetries on their own.
C) The government is itself an imperfect institution.
D) Government intervention will exacerbate any market failures.

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