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
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?
Why is it difficult to measure health outcomes?