Assess students' ability to analyze how asymmetric information alters market outcomes—focusing on adverse selection, moral hazard, and signaling in insurance and credit markets. Test understanding of core models (Akerlof, principal–agent, signaling/screening), equilibrium types (pooling vs separating), welfare implications, and common policy responses (regulation, monitoring, incentives). Require both conceptual explanations and applied quantitative/graphical reasoning with real-world examples.