Suppose That There Are Only Two Types of Used Cars

question 83

Multiple Choice

Suppose that there are only two types of used cars, peaches and lemons and that used cars are pure experience goods. Peaches are worth $10,000, and lemons are worth $6,000. Three fourths of all used cars are peaches, and one fourth are lemons. In a market with no signals, for instance, a market without warranties, the average value of cars actually sold will be

• A) $6,000.
• B) $7,000.
• C) $9,000.
• D) $10,000.

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Definitions:

Sexual Discrimination

Unfair treatment of individuals based on their sex or gender, leading to disparities in opportunities and outcomes.

Age Discrimination

Unfair treatment of individuals based on their age, particularly in employment practices.

Affirmative Action

A policy or a set of measures aimed at increasing opportunities for historically disadvantaged groups in various areas, such as employment and education.

Comparable Worth

The principle that jobs of equal value to an organization should receive equal pay, regardless of the gender or ethnicity of the person performing the job.