Chapter 3 Tools of Normative Analysis1.a.In this particular insurance market, one would not expect asymmetric information to be much of a problem the probability of a flood is common knowledge. Moral hazard could be an issue people are more likely to build near a beach if they have flood insurance. Still, one would expect the market for flood insurance to operate fairly efficiently.b. There is substantial asymmetric information in the markets for medical insurance for consumers
