Because the seller of a used car has more information than the buyer:

A. the problem of bargaining imbalance occurs.
B. the problem of adverse selection occurs.
C. the problem of information overload occurs.
D. the problem of moral hazard occurs.

Answer: B

Economics

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Of the three major economic questions, which of the following is the best example of a "What?" question?

A) Should we make faster microprocessors or pest-resistant corn? B) Should higher-income or lower-income people buy SUVs? C) What should doctors be paid? D) Should automobiles be produced using workers or robots? E) Should migrant workers or domestic workers be used to pick grapes?

Economics

A classless society and economic system where all the factors of production are owned by workers and people share production according to their needs describes:

a. capitalism. b. communism. c. the invisible hand. d. a mixed economy.

Economics