Theme 1.3

Question 1

Give ways the government can tackle information gaps 1.3.4

Answer 1

Information on packets of health risks
Age restrictions, laws of teaching
Curriculum layout
Law of performance review
Trust pilot

Question 2

Give examples of information gaps 1.3.4

Answer 2

Drugs-> where users don’t see the long term problems
Pensions-> where young people don’t see the long term benefits of paying into their pension scheme
Risks from tanning salons-> health issues from UV rays

Question 3

Give examples of asymmetric information 1.3.4

Answer 3

producers know more: a car dealership knows about a fault with the car that the consumer’s unaware of -> misallocation of resources

consumers know more: a borrower knows more about their ability to repay a loan then the lender

Question 4

Give an example of symmetric information 1.3.4

Answer 4

information on the ingredients within a food