e. There is not enough information to answer the question.ANSWER:bPOINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure, a - DISC:Markets, market failure, and externalitiesKEYWORDS:Bloom's: Application162. Adverse selection exists whena. the parties on one side of the market, who have information not known to others, selfselect in a way that benefits the parties on the other side of the market.b.the parties on one side of a market charge more for something than the parties on theother side of the market want to pay.c. one party to a transaction changes his or her behavior in a way that is hidden from andcostly to the other party.d.the parties on one side of the market, who have information not known to others, selfselect in a way that adversely affects the parties on the other side of the market.e. none of the aboveANSWER:dPOINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure, a - DISC:Markets, market failure, and externalitiesKEYWORDS:Bloom's: Application