This Question: 1 pt I 70f 10 (2 complete) Of the following, the best example of

Question

This Question: 1 pt I 70f 10 (2 complete) Of the following, the best example of private information is when A. you are selling a used car and you do not know your used cars defects O B. you pay the owner of a used car a little extra and she lets you know all of the car's defects. O Cl you don't know the quality of a used car and must hire a trained mechanic who tells you all its defects D. you are selling a used car and you know your used car's defects but a potential buyer cannot find out about them until after buying E. Michael knows the price of a galion of milk at the minimart but Michelle doesn't know Click to select your answer

Explanation / Answer

Ans)
D. you are selling a used car and you know your used cars defects but a potential buyer cannot find out about them until after buying.
a relevant information that not all parties have related to a transaction is private information.

D. one party to an exchange has information that is not available to another.
a relevant information that not all parties have related to a transaction is private information.

A. The risk is spread over a large population.
Pooling spreads the risk.

D. one party has information not available to other parties.
Adverse selcetion ocuurs due to private information.

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