State one reason why government intervention may not be a good solution to an asymmetric information problem
Possible answers :
1 . The private market can sometimes deal with information asymmetries using signaling and/or screening.
2 . The government rarely has more information than the private parties.
3 . The government itself is an imperfect institution.
Economics
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Refer to Figure 18-1. Area E + H represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.
Economics
The exchange of goods and services directly without money is called:
a. creative destruction. b. barter. c. arbitration. d. currency trade. e. illegal trade.
Economics