Th1.4: Disadvantages of Provision of Information

Question 1

Define provision of information?

Answer 1

when there is asymmetric information, the government provides information to allow people to make informed decisions. they may also force companies to provide information

Question 2

What are the three disadvantages of provision of information?

Answer 2

expensive
not all information
not listen

Question 3

Expensive

Answer 3

can be expensive for government to do, creating opportunity cost

Question 4

Not all information

Answer 4

government themselves may not always have all the information, so it can be difficult to inform consumers

Question 5

Not listen

Answer 5

consumers may not listen to the information provided due to irrational behaviour

Question 6

What are some examples of provision information labels?

Answer 6

labels on cigarettes