When sellers have more information about the quality of a good than buyers do, a relatively large share of the goods in the market will be low-quality goods. This is the ________ problem.
A. free-rider
B. law of diminishing returns
C. adverse selection
D. moral hazard
Answer: C
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A market supply curve reflects the
A) external costs of producing a good or service. B) external benefits of producing a good or service. C) marginal social costs of producing a good or service. D) marginal private costs of producing a good or service.
Diane lost her job and immediately started looking for another job. As a result the
A. unemployment rate remains constant. B. labor force increases. C. labor force decreases. D. unemployment rate increases.
Refer to the figure above. Which apartment is the best feasible choice for the individual?
A) Apartment 1 B) Apartment 2 C) Apartment 3 D) Apartment 4
A one-year discount bond with a face value of $1000 has an interest rate of 4%. What is its price?
A) $960 B) $961.54 C) $996 D) $1,040