Credence goods are particularly susceptible to the lemons problem because
A) they have qualities that are difficult for producers to fully assess.
B) they have qualities that are difficult for consumers to fully assess.
C) creative responses among producers create volatility in market supply.
D) creative responses among consumers create volatility in market demand.
B
You might also like to view...
Using the data in the above table, suppose imports equal $250 billion and investment equals $1,000 billion. Hence government expenditure equals
A) $1,000 billion. B) $750 billion. C) $500 billion. D) $250 billion.
Which of the following correctly states the relationship between GDP and GNP for the U.S.?
a. GDP equals GNP minus the net income of foreigners. b. GDP equals GNP plus the net income of foreigners. c. GDP equals GNP minus indirect business taxes. d. GDP equals GNP.
A change in the supply of one factor of production
a. can alter the earnings of all of the other factors. b. alters the earnings of capital and labor but not land. c. will not change the marginal productivities of other factors but may change their prices. d. alters the earnings of that factor only.
Participating in a seminar that helps to improve your performance at work represents an investment in your ________ capital.
A. tangible B. financial C. human D. social