Suppose That There Are Only Two Types of Used Cars

question 83

Multiple Choice

Suppose that there are only two types of used cars, peaches and lemons and that used cars are pure experience goods. Peaches are worth $10,000, and lemons are worth $6,000. Three fourths of all used cars are peaches, and one fourth are lemons. In a market with no signals, for instance, a market without warranties, the average value of cars actually sold will be

• A) $6,000.
• B) $7,000.
• C) $9,000.
• D) $10,000.

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Genetic Information Nondiscrimination Act

A federal law that prohibits discrimination in employment and health insurance based on genetic information.

Genetic Information

Genetic information pertains to data about an individual's genetic tests and the genetic tests of their family members, as well as information about any disease, disorder, or condition in family members. It is relevant in contexts such as healthcare and genetics research.

Americans with Disabilities Act

A U.S. federal law enacted in 1990 that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places.

AIDS

Acquired Immunodeficiency Syndrome, a chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV).