The Adverse Selection Process Is Prevalent in the Used Car

question 56

Multiple Choice

The adverse selection process is prevalent in the used car market because

• A) only poorer people are likely to purchase used cars.
• B) sellers know more about the vehicles being sold than do potential buyers.
• C) the price of the car sends a signal about its quality.
• D) so many consumers are adverse to buying used cars.

---

Definitions:

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, and believed to affect social bonding and behaviors.

Counter Pressure

A technique often used in childbirth and massage to alleviate discomfort by applying direct pressure to specific areas.

Perineal Lacerations

Tears in the perineum, the area between the vagina and anus, occurring often during childbirth.

Sitz Bath

A therapeutic bath in which only the hips and buttocks are soaked in warm or cold water, often used to relieve pain or inflammation in the genital or anal areas.