Which of the Following Is Not True of Adverse Selection

question 199

Multiple Choice

Which of the following is not true of adverse selection?

• A)It can result when both parties to a transaction have little information about the quality of the goods involved.
• B)It can cause the quality of goods traded to fall, if quality detection costs are high.
• C)It can be a difficult problem to overcome, because it is not individually rational for the transactor with the superior information to provide a truthful and complete disclosure.
• D)All of the above are true.

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Definitions:

Change Of Venue

Moving a trial to a new location where there has been less pretrial publicity.

Recovered Memories

Memories of traumatic events that were unconsciously blocked and later brought back to consciousness.

Challenge For Cause

A request made by an attorney that a potential juror be removed from the jury panel because he or she is clearly biased and will be unable to hear the case fairly.

Implicit Challenge

a challenge that is not directly expressed or articulated but is implied or understood from the context or behavior.