Question

In economics, a diffrences in
access to relevant knowledge is
called
O An information gap
O A frontier gap
0 Information asymmetry
O Access imperfection
​

Answer 1

Answer:

In economics, a difference in access to relevant knowledge is called a(n) information asymmetry. A driver knows more than his auto insurer about how cautiously he drives. This is an example of. a hidden action.

Explanation:

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Answer 2

Option c is the correct answer.

In economics, a diffrences in access to relevant knowledge is called Information asymmetry.

• It implies that in a transaction one person has access to more information than the other person.
• Due to this difference in access to knowledge one person can take advantage of another person.
• It can also increase efficiency in the economy in the case of specializations because when people will specialize in different jobs then they will work efficiently.