One of the Conclusions from Akerlof's Paper Titled "The Market

question 88

Multiple Choice

One of the conclusions from Akerlof's paper titled "The Market for Lemons" was:

• A) high quality goods will drive low quality goods out of the market.
• B) lacking the ability to distinguish high from low quality, the quality the market will end up offering will be the average quality.
• C) lacking the ability to distinguish high from low quality, low quality may drive high quality out of the market.
• D) high quality is always demanded by consumers over low quality.

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Definitions:

Cognitive Ability

Refers to the capacity of the brain to think, learn, reason, solve problems, and process information.

Cube

A three-dimensional geometric figure with six equal square faces.

Human Existence

A term referring to the state or fact of living or being alive, particularly with respect to human beings.