1
Q
What is symmetric information?
A
A situation where the consumers and producers have the relevant and same information about the market
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
3
Q
Give 3 examples of where information gaps can be found
A
- healthcare
- education
- smoking
4
Q
How is healthcare an information gap?
A
Because people don’t understand the benefit of healthcare, therefore it is underconsumed
Theme 1
flashcards
Decks in class (22)
# Cards
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1.1.1 Economics as a Social Science2
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1.1.2 Postive and Normative Statements4
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1.1.3 The Economic Problem10
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1.1.4 Production Posibility Frontiers9
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1.1.5 Specialised Division of Labour5
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1.1.6 Free, Command and Mixed Economies11
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1.2.1 Rational Decision Making3
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1.2.2 Demand17
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1.2.3 Price, Income, Cross Elasticity of Demand33
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1.2.4 Supply7
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1.2.5 Price Elasticity of Supply8
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1.2.6 Price Determination7
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1.2.6 Price Determination5
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1.2.8 Consumer and Producer Surplus12
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1.2.9 Tax and Subsidies37
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1.4.1 Government Intervention24
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1.3.4 Information Gaps4
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1.3.3 Public Goods5
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1.3.1 Types of Market Failure1
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1.3.2 Externalities16
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1.4.1 Government Intervention in Markets B8
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Government Failure 1.4.25
