Question: Question 7: [3.5 marks] There are foar key tools to help solve (reduce) adverse seloction problem. (a). One important tool to help solve adverse seleetion

Question 7: [3.5 marks] There are foar key tools to help solve (reduce) adverse seloction problem. (a). One important tool to help solve adverse seleetion problem is the private produetion and sale of information. Explain in some detail bow this helps reduce the problem and its limitation [2] marks] (b). List the other three tools that help solve adverse selection problem (excluding the private production and sale of infomation). [1.5 marks]

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