If buyers cannot assess the quality of used cars but there are warranties for cars,
A) too few lemons are sold.
B) too many good used cars are sold.
C) good used cars are sold at a higher price than lemons.
D) there is an adverse selection problem.
C
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The Resolution Trust Corporation was created by the FIRREA in order to
A) manage and resolve insolvent S&Ls. B) build up trust in government regulation. C) regulate the S&L industry. D) purchase large amounts of government debt.
Because firms in an oligopoly are interdependent, they attempt to maximize revenues rather than profits
a. True b. False
In 1978, China was the world's 15th-largest economy. By 2011, China had:
A. the second-largest economy in the world. B. a larger economy than Japan but smaller than Germany. C. an economy worth about $11 trillion. D. the fourth-largest economy in the northern hemisphere
Recall the Application about the harmattan and how it affects the price of cocoa to answer the following question(s).This Application illustrates how a change in weather conditions can adversely impact the ________ by ________ the price of a good.
A. demand; decreasing B. demand; increasing C. supply; decreasing D. supply; increasing