Because of Asymmetric Information,most Used Cars That Are Offered for Sale

question 57

Multiple Choice

Because of asymmetric information,most used cars that are offered for sale will be sold for prices that are greater than their true value.Because of this fact,the used car market falls victim to

• A)the free-rider problem.
• B)deadweight loss and economic inefficiency.
• C)a surplus of used cars.
• D)adverse selection.

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Definitions:

Addition Products

Compounds formed by the direct addition of two or more substances, typical in reactions of alkenes and alkynes with reagents.

Carbocation Intermediate

A positively charged intermediate species featuring a carbon atom with three bonds and a vacant p-orbital, playing a critical role in many organic reactions.

Solvolysis

A chemical process in which the solvation medium, typically a solvent, participates in the cleavage of a bond within a solute, leading to the formation of new substances.

Hot Ethanol

A term referring to the condition or process involving ethanol at elevated temperatures, often used in chemical reactions and extractions.