Asymmetric Information Exists in the Market for Used Cars Because

question 87

Multiple Choice

Asymmetric information exists in the market for used cars because

• A) sellers have better information concerning the quality of used cars than buyers.
• B) buyers have better information concerning the quality of used cars than sellers.
• C) buyers and sellers have equal information concerning the quality of used cars.
• D) it is impossible for buyers or sellers to determine the quality of used cars.

---

Definitions:

Law School

An institution specializing in legal education, typically offering professional degrees for practicing law.

Social Class

A division of society based on social and economic status, often influencing one's opportunities, lifestyle, and manner of speaking.

Telethon

A televised fundraising event, often featuring entertainers, which is intended to raise money for a charitable cause.

Absolute Poverty

A condition where an individual or family does not have enough resources to meet the basic needs for healthy living, including food, clean water, and shelter.