There is empirical evidence on adverse selection in the used car market. One researcher found that owners of ________ try to sell them to ill-informed buyers while those of ________ cars try sell them to friends and family
a. lemons; good
b. lemons; bad
c. wrecked ones; expensive
d. expensive ones; good
a
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The right to own or control a resource is called a ________
Fill in the blank(s) with correct word
The price of coffee rose 50 percent and coffee sales fell 25 percent. Doughnut sales also fell 25 percent. From this information we can conclude that
a. demand for coffee is inelastic. b. coffee and doughnuts are complements. c. the cross elasticity of demand is minus 0.5 percent. d. All of the above are correct.
Keynes believed that:
A. market forces pushing the economy to potential income were weak. B. the government could not aid market forces to push the economy to its potential income. C. market forces pushing the economy to potential income were strong. D. market forces pushing the economy into cumulative spirals were weak.
A problem with using fiscal policy to fine-tune the economy is that
A. fiscal policy impacts the economy too fast. B. fiscal policy impacts only the largest states in the nation. C. fiscal policy impacts only urban areas of the nation. D. it takes time for policymakers to agree on the appropriate fiscal policy.