Because of Asymmetric Information,most Used Cars That Are Offered for Sale

question 57

Multiple Choice

Because of asymmetric information,most used cars that are offered for sale will be sold for prices that are greater than their true value.Because of this fact,the used car market falls victim to

• A)the free-rider problem.
• B)deadweight loss and economic inefficiency.
• C)a surplus of used cars.
• D)adverse selection.

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Definitions:

Generalised Anxiety Disorder

A psychiatric condition marked by continuous and intense concern over different facets of life.

Post-Traumatic Stress Disorder

Post-Traumatic Stress Disorder (PTSD) is a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Dissociative Amnesia

A mental health disorder characterized by memory loss that is more significant than typical forgetfulness and not due to other medical conditions.

Dissociative Identity Disorder

A psychological disorder characterized by the presence of two or more distinct personality states or identities in an individual, often resulting from severe trauma.