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

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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

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3
Q

Give 3 examples of where information gaps can be found

A
  • healthcare
  • education
  • smoking
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4
Q

How is healthcare an information gap?

A

Because people don’t understand the benefit of healthcare, therefore it is underconsumed

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