The Lemons Problem Is Caused by

question 69

Multiple Choice

The lemons problem is caused by

• A) health-care providers' incentive to order unnecessary tests.
• B) used car buyers' inability to determine the quantity of used cars offered for sale.
• C) auto insurance companies inability to adequately screen drivers.
• D) the missing health care market.
• E) government regulations than make some information private.

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Definitions:

Focal Objects

Core items or subjects in a study or a field of interest that attract primary attention or analysis.

Physical Things

Objects or substances that have a tangible presence and can be perceived through the senses.

Attribution Theory

A psychological theory that attempts to explain how individuals determine the causes of others' behavior, attributing it to internal dispositions or to external situations.

Lazy

Characterized by a lack of effort or unwillingness to expend energy in tasks.