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?