Answer:
<u>Information asymmetry.</u>
Explanation:
Information asymmetry is characterized as a market failure that causes power imbalance. This occurs when some party involved has more information than another party.
This situation is becoming more widespread in microeconomics, as it interferes with the classic concept that the free market must follow the concept of perfect competition.
But information asymmetry is a market failure that directly impacts business relationships, and causes cases of adverse selection and moral hazard.
Ideally, there should be greater transparency in the financial statements that are required to be published so that the risk of information asymmetry between the company and investors is reduced.
Answer:
number 3 lang ung X 1 2 4 5 heart na
Answer:
B. Imposed Non Exchange Transactions
Explanation:
A non exchange transaction is a form of transaction whereby a party or a group or an individual receives something of value without directly giving value back in exchange. In non exchange transactions, a party gives value to another without directly receiving approximate value in exchanges. Grants, taxes, special assessments, fines and so on are all parts of non exchange transactions. However, taxes and fines are imposed non exchange transactions because they are assessed and not derived from transactions.
Answer:
a. greater variety and lower prices
Explanation:
Due to the comparative advantages, countries can produce the product that they have proficiency. For example, if there are 2 countries, A and B. A have a skill of producing tasty wine, they can produce better quality of wine than B with the lower cost. When the trade barriers are reduced, the wine from A will be sold in B, the customer will have more choices of wine in the market and the price will relatively less different comparing to the price when the high barriers exist.
