Question 1
If ________ enters into an exchange with another party who has ________ information, there is asymmetric information and adverse selection.
◦ a buyer or seller; an equal amount of
◦ a buyer or seller; more
◦ only a buyer, but not a seller; more
◦ only a seller, but not a buyer; more
Question 2
In the market for used electric wheelchairs, there are high- and low-quality wheelchairs. Potential buyers cannot determine prior to purchase whether a wheelchair is high or low quality. The following statement that best describes what is likely to happen in this market is
◦ this is an example of adverse selection, as the buyer will have more information about the quality of the used wheelchair than will the seller.
◦ over time the market price of a used wheelchair will increase, as there is more of an incentive for owners of high-quality wheelchairs to sell than owners of low-quality wheelchairs.
◦ the price of a used wheelchair will be very close to the value of a high-quality wheelchair, which will encourage people to sell high-quality wheelchairs.
◦ the price of a used wheelchair will be between the buyer and seller values for low-quality wheelchairs. This will encourage people to withdraw high-quality wheelchairs from the market.
As sessile organisms, plants have evolved many mechanisms to mitigate the potential damage of abioti
Electric Flux
Early in the twentieth century, when malnutrition was common, companies such as this one advertised
Neuronal action potential.
A high-performance aftermarket air filter often can increase airflow into the engine for more ...
Movement of Sodium and Potassium Ions During the Action Potential