Economics A-Level
Information Asymmetry
What Information Asymmetry means in Economics A-Level, as defined for Pearson Edexcel.
Definition of Information Asymmetry
Investigation of imbalances in information between buyers and sellers, specifically focusing on adverse selection and moral hazard in insurance and labor markets.
Topics that use Information Asymmetry
- Market failure (Pearson Edexcel A-Level)
Related terms
Using Information Asymmetry in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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