Which of the following is a possible solution to the adverse ...

[SO00]

Which of the following is a possible solution to the adverse selection problem?
 a. Screening
 b. Signaling
 c. All of the above
 d. None of the above

Question 2

A consumer values a car at 30,00 . and a producer values the same car at 20,000 . If the transaction is completed at 24,000 . the transaction will generate:
 a. No surplus
  b. 4,00 . worth of seller surplus and unknown amount of buyer surplus
  c. 6,00 . worth of buyer surplus and 4,00 . of seller surplus
  d. 6,00 . worth of buyer surplus and unknown amount of seller surplus

[brittiany.barnes]

Answer to Question 1

c

Answer to Question 2

c

[SO00]

Thank you

[brittiany.barnes]

No problemo