A student that asks interesting questions during the lecture generates

A deadweight loss

A) is possible only if the good is underproduced but is not possible if the good is overproduced. B) subtracts only from producer surplus. C) is a loss to consumers and a gain to producers. D) is a loss inflicted on the entire society.

Explain the nature and consequences of asymmetric information for each of the following cases. What options are available in each instance to reduce the problem?

a. medical insurance b. issuance of credit cards c. professional athletes d. market for used appliances