Author Question: The lemons model suggests that owners will have superior information about the quality of their cars ... (Read 56 times)

lunatika

  • Hero Member
  • *****
  • Posts: 548
The lemons model suggests that owners will have superior information about the quality of their cars and incentives to conceal it, to which buyers will respond by lowering their bids.
  Indicate whether the statement is true or false

Question 2

A negative externality occurs when
 A) there is rent-seeking.
  B) benefits are imposed on individuals that are not part of a transactions.
  C) there is creative destruction.
  D) costs are imposed on individuals that are not part of a transaction.



chereeb

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

T

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

For a complete list of videos, visit our video library