A Situation Where Bad Quality Drives Good Quality Out of a Market

question 15

Multiple Choice

A situation where bad quality drives good quality out of a market is known as

• A) private property rights.
• B) adverse selection.
• C) social regulation.
• D) common ownership.
• E) moral hazard.

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Definitions:

Removal

The act or process of taking something away or eliminating it.

Behavior

Observable actions of human beings and non-human animals, including their interactions with the environment and other organisms.

Negative Reinforcement

A form of operant conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Internal Revenue Service

The Internal Revenue Service (IRS) is a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.