8. An individual is willing to pay something for information because

a. this allows him or her to increase utility.

b. it is always better to know than not to know.

c. information is costly.

d. information is a public good.

Booster class

Microeconomics

Skill

Explaining Imperfect Information

answer

watching

276

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Raushan RajLv8

2 Nov 2020

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

9. Asymmetric information problems are particularly severe in the market for insurance. This is true because

a. insurance companies will always know more about the likelihood of an event happening than will buyers of insurance.

b. buyers of insurance will always know more about the likelihood of an event happening than will insurance companies.

c. insurance companies and buyers of insurance cannot distinguish between good and bad information.

d. insurance companies are non-depository financial institutions.

Just because something is useful doesn't mean it brings someone utility and vice versa. With this being the case, provide two examples of a good or service that are useful and will bring a certain individual utility because of their usefulness. Also, provide two examples of a good or service that are not useful but will bring a certain individual utility even though they're not useful. Be sure to provide a brief rationale for your choices.

What is critical in determining whether something is produced as a public good?

a. whether the market is willing to provide it

b. whether the benefits to society are greater than the total cost

c. whether the benefits to society are equal to the total cost

d. whether the government is willing to provide it