Information And Regulation Flashcards
(5 cards)
1
Q
What is perfect information
A
All consumers and producers have complete knowledge and all information they need to make decisions
2
Q
What is imperfect information
A
Any information which is missing incomplete or inaccurate when making a decision
3
Q
What is symmetric information
A
Where both parties in a transaction have access to the same complete and accurate information
4
Q
What is asymmetric information
A
Occurs when both parties in a transaction have access to the same complete and accurate information
5
Q
What is regulation
A
A set of rules imposed by government that modifies or determines the behaviour of firms or organisations
