Frank Wants to Buy a Used Car from Adam

question 115

Multiple Choice

Frank wants to buy a used car from Adam.Adam knows the car is a lemon,but he doesn't tell Frank.This is an example of:

• A) Natural selection
• B) Moral hazard
• C) Hidden actions
• D) Open-access resources
• E) Adverse selection

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Definitions:

Jomon Culture

A prehistoric Japanese culture known for its early pottery, roughly dating from 14,000 BC to about 300 BC, characterized by cord-patterned pottery.

Kofun Period

A period in the history of Japan, from about the 3rd to the 7th century AD, noted for the construction of large tumulus graves or kofun.

Keyhole

A small opening in a door or lock that receives the key for locking and unlocking, often symbolic of privacy, secrecy, or mystery.

Hiragana Script

A component of the Japanese writing system, consisting of a set of syllabic symbols used for native Japanese words and grammatical elements.