The Problem of Adverse Selection Was First Studied by Economist

question 41

Multiple Choice

The problem of adverse selection was first studied by economist ________ who showed how it can undermine the possibilities for trade in the market for _______.

• A) Joseph Stiglitz; used cars
• B) Joseph Stiglitz; college education
• C) George Akerloff; used cars
• D) George Akerloff; college education

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Definitions:

First Digit

The initial number in a sequence of digits, often discussed in the context of Benford's Law which predicts the distribution of first digits in many real-life sets of numerical data.

Clerical Work

Tasks related to general office management, such as filing, typing, and handling correspondence, typically requiring attention to detail.

Specialized Work

Work focused on a particular industry, sector, or area of expertise, requiring specific skills or knowledge.

Benefit Packages

A collection of non-wage compensations provided to employees in addition to their normal salaries or wages.