Which of the Following Is False

Multiple Choice

Which of the following is false?

A) ​Product liability laws can make it unprofitable to sell shoddy merchandise, providing a substantial incentive to provide safe products independent of government regulations.
B) ​Asymmetric information exists when the available information is initially distributed in favor of one party to a transaction relative to another.
C) ​In adverse selection situations, it is rational for a seller with more information about a product to provide a truthful and complete disclosure and make that fact known to a potential buyer.
D) ​Moral hazard arises in part from the fact that it is costly for an insurer to monitor the behaviors of the insured party.