The used car market without warranties suffers from
A) perfect competition.
B) oligopoly.
C) adverse selection and moral hazard.
D) excessive signaling.
C
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In economic theory, transaction costs refer to
A) fees charged by brokers, traders, or other agents rather than by principals. B) costs attributable to the operations of middlemen. C) costs of arranging and carrying out voluntary exchanges. D) costs of obtaining customers or of marketing a product. E) costs not borne by the persons creating them.
Why is it assumed that loans made in the form of check able deposits will cause money to flow into other banks?
What will be an ideal response?
When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine:
A. if the tax would be allocated equitably. B. what congestion tax amount should be charged. C. who should be exempt from the tax. D. where to spend the revenue generated.
Modern economists are increasingly using microeconomic analysis in macroeconomics because
A) microeconomic theory is more scientific. B) aggregate outcomes stem from decisions made by individuals, business firms and government. C) macroeconomic subjects such as inflation affect all individuals. D) macroeconomics is older and more outdated.