Question

The term “economics of information” refers to a theory that proposes that:

Question 6 options:

1)	minority group members are usually not informed of all of their fights as a borrower, and are therefore not allowed to take advantage of economic opportunities available to others

2)	often the expense of acquiring information is greater than the benefits. In such a case, discrimination may occur

3)	firms with the best information about their borrowers are almost always more successful. But, it may be illegal to ask borrowers to supply that information or to base the loan decision upon that information

4)	discriminatory firms generally have to spend more to ensure that their records comply with the strict letter of the regulations

Answer 1

Ans is

2

often the expense of acquiring information is greater than the benefits. In such a case, discrimination may occur

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