Session:16 Information, Risk, and Insurance
Self-Check Questions
Principles of Microeconomics 3e | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-microeconomics-3e
1. For each of the following purchases, say whether you would expect the degree of imperfect information to be relatively high or relatively low:
- Buying apples at a roadside stand
- Buying dinner at the neighborhood restaurant around the corner
- Buying a used laptop computer at a garage sale
- Ordering flowers over the internet for your friend in a different city
2. Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate the traits they are seeking in a new employee?
3. Why is it difficult to measure health outcomes?