1 out of 1 pointsWhere there is asymmetric information between buyers and sellers.AnswerSelected Answer:markets can produce inefficient outcomes.
1 out of 1 pointsSuppose a firm offers its workers a cafeteria plan in which it allows workers to allocate a setamount of fringe benefit money toward specific insurance. Mary, who has five kids needingbraces, selects the family dental coverage. This is an example of the:AnswerSelected Answer:adverse selection problem.
1 out of 1 pointsProfessional buyers of antiques often have more information about the value of antiqueobjects than do the sellers. This illustrates:AnswerSelected Answer:asymmetric information.
1 out of 1 pointsUpon learning that his auto transmission is about to fail, Ray Roma sells his car to anunsuspecting buyer. This circumstance illustrates:AnswerSelected Answer:asymmetric information.