In the Market for Used Cars,the Lemons Problem Means That

question 90

Essay

In the market for used cars,the lemons problem means that owners of ________ cars have no incentive to offer them for sale because the market price is ________ than their marginal benefit.
A) good; more
B) bad; more
C) bad; less
D) fair; more
E) good; less

• A) good; more
• B) bad; more
• C) bad; less
• D) fair; more
• E) good; less

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Definitions:

Middle Ages

A historical period in Europe between the fall of the Roman Empire and the beginning of the Renaissance.

Age of Reason

A developmental stage where children begin to think logically about concrete events and understand the concept of cause and effect.

Blank Slates

A theory suggesting that individuals are born without built-in mental content, and all knowledge comes from experience or perception.

Synonymous

Having the same, or nearly the same, meaning as another word or phrase in the same language.