Why is the study of asymmetric information associated with the market for "lemons"?
A) Potential buyers of used cars have difficulty separating good used cars from bad used cars; bad used cars are often referred to as "lemons."
B) Because there is little advertising in the market for lemons, buyers have difficulty determining the quality of lemons before they are purchased.
C) Sellers of citrus fruit — lemons, oranges, grapefruit — know the difference between bad fruit and good fruit; buyers do not have this information.
D) Most sellers of used cars have less information about their cars than the dealers who buy them; used cars are often referred to as "lemons."
A
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One factor contributing to the decline in cost advantages that banks once had is the
A) decline in the importance of checkable deposits from over 60 percent of banks' liabilities to 2 percent today. B) decline in the importance of savings deposits from over 60 percent of banks' liabilities to under 15 percent today. C) decline in the importance of checkable deposits from over 40 percent of banks' liabilities to 15 percent today. D) decline in the importance of savings deposits from over 40 percent of banks' liabilities to under 20 percent today.
Barter is a system of exchange that does not depend on a coincidence of wants
a. True b. False Indicate whether the statement is true or false