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  2. Business
  3. Principles of Economics Study Set 4
  4. Quiz 11: The Economics of Information

In Which of the Following Markets Is the Presence of Asymmetric

Question 86
Multiple Choice

In which of the following markets is the presence of asymmetric information most critical for the buyers? A)The market for computers B)The market for used textbooks C)The market for paint D)The market for existing houses

Related questions
Q 87
In which of the following markets is the presence of asymmetric information of little concern to the buyer? A)The market for used textbooks B)The market for used houses C)The market for used computers D)The market for used cars
Q 88
The lemons model is used to analyze A)the market for citrus products. B)markets with asymmetric information. C)the smart-for-one-dumb-for-all principle. D)the low hanging fruit principle.
Q 89
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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