One Effect of the Lemons Problem in the Used Car

question 147

Multiple Choice

One effect of the lemons problem in the used car market is that

• A)the market is efficient
• B)without reliable information, lemons become increasingly common
• C)no good cars are offered on the market
• D)no lemons are offered on the market
• E)good cars sell at more than their market value

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Definitions:

Questions of Fact

Issues in a legal case that are related to the determination of factual disputes by a judge or jury.

Highest Appellate Court

The supreme authority in the judicial hierarchy capable of reviewing and overturning lower court decisions, often the supreme or constitutional court in a country.

Supreme Court

The highest judicial court in a country or jurisdiction, often having the ultimate authority in interpretive, legal, and constitutional matters.

Final Court

The ultimate judicial tribunal in a legal system where the final interpretation of law or final appeal is decided.