3. The lemons problem applies not only to corporate debt but also to government debt. Is this statement true or false? Explain

14. Suppose that in a given bond market, there is currently no information that can help potential bond buyers to distinguish between bonds. Which bond issuers have an incentive to disclose information about their companies? Explain why.

16. Which problem of asymmetric information are prospective employers trying to solve when they ask applicants to go through a job interview? Is that the end of the information asymmetry?

17. How can the existence of asymmetric information provide a rationale for government regulation of financial markets?