Some states have laws that require that used car dealers give buyers a 30-day period during which they can return cars that are discovered to be lemons (low-quality). Who do laws like this help? Who do they hurt?
What will be an ideal response?
Buyers are helped because if they find that they have overpaid for a car they can return it. Sellers of plums (high quality) are also helped because consumers will feel confident in buying their cars at high prices. These sellers need not worry about the cars being returned because they are plums (high quality). The only people hurt are the sellers of lemons (low quality) who cannot cajole someone into buying a lemon and then "stick" them with it.
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The narrowest definition of money:
A. is referred to as hard money. B. includes the things that can be used in transactions immediately. C. contains only cash and bank reserves held at the Fed. D. All of these are true.
The Industrial Revolution was important to the history of economic systems because it:
A. concentrated wealth in the hands of a few noblemen who then controlled the land in their region, creating a feudal system. B. increased the wealth of merchants and artisans and eventually led to a change in economic systems to mercantilism. C. changed the way people exchanged goods-from barter to using money as a medium of exchange. D. increased the power of capitalists and eventually led to a revolution instituting capitalism as the dominant economic system.
A sole proprietorship is limited to how many owners?
A) 1 B) 2 C) 10 D) There is no limit to the number of owners.
Which of the following statements is not correct?
A. In large measure, economics is the study of how people make choices. B. Economic analysis can be used to explain how both individuals and societies make decisions. C. If poverty were eliminated, there would be no reason to study economics. D. Economics is a behavioral science.