Because the Presence of a Warranty for a Good Is

question 79

Multiple Choice

Because the presence of a warranty for a good is a signal that the good is of high quality,

• A) consumers are willing and able to pay more for a good that carries a warranty.
• B) consumers are willing to buy goods if and only if the goods come with warranties.
• C) producers do not need to charge extra for warranties.
• D) producers can use warranties to sort out high-risk customers.
• E) producers must make warranties available on all goods.

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Definitions:

Public Schools

Educational institutions funded and controlled by the government, providing free education to students.

Public Education

An education system funded and administered by the government, providing free education to the public from primary to secondary levels.

Private Schools

Educational institutions not administered by governments but rather run by private individuals or organizations, often charging tuition.

Johnson-Reed Act

A U.S. federal law enacted in 1924 that aimed to limit immigration by establishing national quotas that discriminated against immigrants from Eastern and Southern Europe and virtually excluded Asians.