Jessica Lists Her Faulty Treadmill for Sale on Craigslist but Does

question 327

Multiple Choice

Jessica lists her faulty treadmill for sale on craigslist but does not disclose the problems with it. If Blake buys the treadmill believing that it's problem-free, this is an example of market failure due to:

• A) the existence of external costs
• B) the existence of public goods
• C) the lack of competition
• D) asymmetric information

---

Definitions:

Personally Distressing

A term that describes a personal experience or condition that causes emotional pain or discomfort.

Dysfunctional

Pertaining to the impaired or abnormal functioning of a system, organ, or mechanism in a living organism or organization.

Schizophrenia

A mental disorder characterized by distorted thinking, perception, emotions, language, sense of self, and behavior.

Neurotransmitter

Substances in the nervous system that facilitate signal transmission from one nerve cell to another across synaptic gaps.