1.3.4 Information Gaps Flashcards
1
Q
What is symmetric information?
A
A situation where the consumers and producers have the relevant and same information about the market
2
Q
What is asymmetric information?
A
A situation in which the consumers and producers don’t have relevant or correct information regarding the market
3
Q
Give 3 examples of where information gaps can be found
A
- healthcare
- education
- smoking
4
Q
How is healthcare an information gap?
A
Because people don’t understand the benefit of healthcare, therefore it is underconsumed
