Fall Is Coming, with the Prospect of Frost, So You

question 23

Multiple Choice

Fall is coming, with the prospect of frost, so you decide to pick the last tomatoes on the vine even though they are still green. If you wanted to ripen these tomatoes, which method would be most effective?

• A)Put all the green tomatoes in a closed paper bag.
• B)Put the green tomatoes in a dark closet, but with a flash of light about every 4 hours.
• C)Put the green tomatoes in a plastic bag with an overripe apple.
• D)Store each green tomato in a separate plastic bag and put them in the dark.

Evaluate the strategies individuals adopt in response to information asymmetry.

Contrast the outcomes of separating and pooling equilibria.

Examine how economic incentives influence individual decisions in the presence of asymmetric information.

Infer the role of appraisals in mitigating the effects of adverse selection.