Distinguish between two kinds of asymmetric information
What will be an ideal response?
One type of information asymmetry occurs when one party in a transaction observes some characteristics of the good or service that the other does not. In this case, the good is said to have hidden characteristics. Another kind of information asymmetry occurs when one party in a transaction takes actions that are relevant to but not observed by the other party. Such actions are called hidden actions.
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A choice made _______ is a choice whether to do a little more or a little less of something.
A) at the front end B) in the beginning C) at the margin D) all of the above.
If a country has an absolute advantage in producing a product, it may not have a comparative advantage in producing that product
Indicate whether the statement is true or false