Asked by
Spencer Loebbaka
on Nov 05, 2024
Verified
Which of the following help to correct for the market failure of imperfect information?
A) professional licensing
B) homeowner warranties
C) nutrition labeling
D) All of the above are correct.
Imperfect Information
A situation in which all parties in a transaction do not have equal access to relevant information, leading to inefficiencies in the market.
Market Failure
A situation in which a market left on its own fails to allocate resources efficiently, often justifying government intervention.
Nutrition Labeling
Information provided on food packaging that details the nutrient content, such as calories, fats, vitamins, and minerals.
- Understand the importance of incomplete information in market exchanges.
- Comprehend the processes by which corrections can be made to market failures.
Verified Answer
PN
Learning Objectives
- Understand the importance of incomplete information in market exchanges.
- Comprehend the processes by which corrections can be made to market failures.