Author Question: The lemons model suggests that owners will have superior information about the quality of their cars ... (Read 53 times)

lunatika

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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

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Answer to Question 1

T

Answer to Question 2

D



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