Business education credentials like an MBA degree may help you to solve which of the following problems? A

• The correct answer is D. information asymmetry.

The meaning of information asymmetry can be described as the gap of knowledge between two parties that enter into a transaction. That is to say, in a transaction, one party has more information than the other party which can cause problems in the allocation of scarce resources. When individuals hold an MBA degree, this informational gap is reduced since they have acquired specialized knowledge for the obtention of the degree.

Option A. is incorrect because the free-rider problem is associated with entities that enjoy a benefit without paying to obtain that benefit. Option B. is linked to the increase in risk exposure by one party that does not bear the cost of the risk. Option C. is the result of self-interest actions that lead to collective problems.