The Classic Example Used to Discuss the Problem of Adverse

question 3

Multiple Choice

The classic example used to discuss the problem of adverse selection is:

• A) fruit and produce markets, such as lemons.
• B) workers who shirk when their effort isn't closely monitored.
• C) the imbalance of information that exists between a buyer and seller of a used car.
• D) drivers with insurance who tend to drive more recklessly.