The Major Prediction of the Lemons Model Is That

question 117

Multiple Choice

The major prediction of the lemons model is that

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

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Definitions:

Fluid Intelligence

The aspect of cognitive ability that involves reasoning, problem-solving, and the ability to learn new information quickly and apply it.

Age

The length of time that a person or object has existed, often used to denote the life stage of an individual.

Intellectual Disability

A situation marked by considerable deficits in both cognitive capabilities and adaptive actions, including a spectrum of daily life social and practical proficiencies.

Adaptive Abilities

The capability of individuals or species to adjust or change in response to new or altered environmental conditions.