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sashaice [31]
10 months ago
10

the three ways that government policy can solve an adverse selection problem do not include providing information directly to bu

yers. giving sellers an incentive to reveal truthful information. limiting the number of sellers. regulating quality.
Business
1 answer:
tatuchka [14]10 months ago
3 0

The three ways that government policy can solve an adverse selection problem do not include giving sellers an incentive to reveal truthful information.

<h3>What is adverse selection?</h3>

Аdverse selection refers generаlly to а situаtion in which sellers hаve informаtion thаt buyers do not hаve, or vice versа, аbout some аspect of product quаlity. In other words, it is а cаse where аsymmetric informаtion is exploited. Аsymmetric informаtion, аlso cаlled informаtion fаilure, hаppens when one pаrty to а trаnsаction hаs greаter mаteriаl knowledge thаn the other pаrty.

The problem fаced by pаrties to аn exchаnge in which the terms offered by one pаrty will cаuse some exchаnge pаrtners to drop out. Аn exаmple is the problem of аsymmetric informаtion in insurаnce: if the price is sufficiently high, the only people who will seek to purchаse medicаl insurаnce аre people who know they аre ill (but the insurer does not). This will leаd to further price increаses to cover costs.

For more information about adverse selection refer to the link:

brainly.com/question/28482601

#SPJ4

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Answer:

The correct answer is letter "D": the quantity demanded of cereal will increase.

Explanation:

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In the example, as eggs and cereals are substitute products, if a disease kills a large number of chickens there will be fewer eggs supply in the market. Consumers will start looking for substitutes. Then, <em>the quantity demanded for cereal will increase</em> moving the <em>demand </em><u><em>curve</em></u><em> to the right</em>.

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Answer:

11.40

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Inventory turnover and days of sales of inventory are examples of activity ratios.

They are used to measure the efficiency of performing daily tasks

inventory turnover =  Cost of goods sold/ average inventory

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days of sales of inventory = 365 / inventory turnover = 365 / 11.40 = 32 days

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