Author Question: The lemons problem is that when there are hidden characteristics known only to the seller of a used ... (Read 15 times)

mwit1967 · **on:** Jun 30, 2018

The lemons problem is that when there are hidden characteristics known only to the seller of a used car,
a. the ratio of lemons to high-quality cars is likely to be high
b. the ratio of lemons to high-quality cars is likely to be low
c. good used cars will sell for more than their market value
d. no lemons will be offered on the market
e. the price of lemons will be below their market value

Question 2

There is a tremendous range in productive performance around the world.
a. True
b. False