A perfect market would have all but which of the following characteristics?
A) Infinitely divisible securities
B) Asymmetric information
C) Buyers and sellers of financial instruments would know the true quality of what they are buying and selling.
D) Buyers and sellers could transact with each other without cost (no transactions costs).
B
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If the total utility derived from consuming three oysters was 40 utils and the total utility derived from consuming four oysters was 62 utils, what was the marginal utility derived from the consumption of the fourth oyster?
A) 102 utils B) 62 utils C) 22 utils D) It is impossible to determine.
As the price of gasoline rose during the 1970s, consumers cut back on their use of gasoline relative to other consumer goods. This situation contributed to which bias in the consumer price index?
A. substitution bias B. transportation bias C. quality bias D. indexing bias