C. INFORMATION ECONOMICS 1. Explain how information asymmetry causes market failure in the market for accounting information. 2. Explain two remedies (solutions) to the causes of market failure in the accounting information market. One solution should be market-based and another solution should be government-based i.e. regulation. 3. The Hammel case demonstrates how the concept of moral hazard adversely affects the accounting information market. Explain. 4. Go to the PCAOB website and select the latest issue they are dealing with now (2021). 1. Explain the issue 2. Show how it will improve the quality or quantity of accounting information on the market