Sellers of Good-Quality Used Cars Are Not Able to Sell

question 42

Multiple Choice

Sellers of good-quality used cars are not able to sell for a price they are willing to accept. This is:

• A) moral hazard.
• B) a principal-agent problem.
• C) an information asymmetry.
• D) a market failure.

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Definitions:

Procedural Injustice

The perception that the processes leading to outcomes are unfair.

Taxation

The process by which a government imposes charges on citizens or residents to generate revenue for public expenses and services.

Representation

The act of speaking or acting on behalf of someone or the depiction of someone or something in a particular manner.

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources.