Information Gaps Flashcards
1
Q
What is information gaps
A
When consumers or producers lack the information needed to make an informed decision
2
Q
What are the 2 types of information gaps
A
Incomplete information
Asymmetric information
3
Q
What is incomplete information
A
When someone doesn’t have full information about the benefits or costs of their decision
4
Q
What is asymmetric information
A
When one party knows more than another party in a transaction
5
Q
What is symmetric information
A
When all parties know just as much as each other
6
Q
How does the gov correct incomplete information of education
A
Regulation: a legal requirement for students to attend school till the age of 18
Subsidising university fees as price decreases leading to quantity or increase
