Which of the following is the outcome of the lemons problem in the used-car market?

A) Only low-quality cars will be traded in the market.
B) Only high-quality cars will be traded in the market.
C) Both low-quality and high-quality cars will be traded in the market.
D) No cars will be traded in the market.

A

Economics

You might also like to view...

If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03, the money multiplier is

A) 5.22. B) 6.67. C) 0.76. D) 4.46. E) 3.23.

Economics

The unemployment rate equals [(the number of people unemployed)/(the population)] × 100

Indicate whether the statement is true or false

Economics