The Major Prediction of the Lemons Model Is That

question 10

Multiple Choice

The major prediction of the lemons model is that:

• A)asymmetric information reduces the average quality of goods offered for sale.
• B)people will generally choose "low-hanging fruit".
• C)a used car in good condition can be sold for a higher-than-average price.
• D)used cars offered for sale are generally in better-than-average condition.

---

Definitions:

Representative Sample

A smaller group taken from a larger population that accurately represents the characteristics of the whole population.

National Election

The process by which citizens of a country vote to choose representatives or leaders at a national level.

Causes

The reasons or factors that bring about an effect or a result.

Effects

Effects refer to the outcomes or results generated by a cause or influence, which can manifest in various aspects such as physical health, psychological states, or environmental conditions.