1. On what dimensions of an adopted child is there asymmetric information between the adoptive parents and the mother who gave birth to the child ("birth mother")? To what extent does this information asymmetry also arise between the adoptive parents and an orphanage?
2. Referring to the combination of the one-child policy and societal preference for male children, explain why children available for adoption from China are relatively healthier than those from other countries. Would this still be true if Chinese parents had no preference for male or female children?
3. In the case of children available for adoption from China, is the extent of adverse selection greater among male or female children?
4. What measures can parents wishing to adopt Chinese children take to resolve their asymmetry of information?
5. How would vigorous enforcement against ultrasound gender scanning and selection abortions affect China's supply of children for adoption?
Basically for this case you have to look at the one child policy and look at how this has impacted... View the full answer