One of the Conclusions from Akerlof's Paper Titled "The Market

question 88

Multiple Choice

One of the conclusions from Akerlof's paper titled "The Market for Lemons" was:

• A) high quality goods will drive low quality goods out of the market.
• B) lacking the ability to distinguish high from low quality, the quality the market will end up offering will be the average quality.
• C) lacking the ability to distinguish high from low quality, low quality may drive high quality out of the market.
• D) high quality is always demanded by consumers over low quality.

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Definitions:

Folkways

Norms or customary behaviors that are socially approved but not morally significant, guiding everyday practices.

Linguistic Determinism

The hypothesis that the structure of a language can strongly influence the thoughts and actions of individuals.

Edward Sapir

An American anthropologist and linguist, best known for his contributions to the development of the field of linguistic anthropology and the Sapir-Whorf hypothesis.

Benjamin Lee Whorf

An American linguist known for his hypothesis on linguistic relativity, suggesting language shapes thought and cultural perception.