A Warranty on a Used Car Is a Credible Signal

question 65

Multiple Choice

A warranty on a used car is a credible signal of quality because:

• A)many used cars come with warranties.
• B)sellers who offer warranties are more honest than most people.
• C)it would cost the seller too much to honor a warranty on a low-quality car.
• D)it indicates the car is of average quality.

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Definitions:

Latin American Markets

Refers to the economies and trading systems within countries located in Latin America, noting their unique challenges and opportunities.

Managing Employees

The act of overseeing and guiding employees' work and performance to achieve organizational goals.

Human Capital

The collective skills, knowledge, abilities, health, and motivations of individuals that contribute to their economic value in the workforce.

Tangible Asset

Physical assets that can be seen and touched, such as machinery, buildings, and inventory.