Which of the following is true of adverse selection?
a. It can result when one of the parties to a transaction has little information about the quality of the goods involved.
b. It can cause the quality of goods traded to fall, if quality detection costs are high
c. It can be a difficult problem to overcome, because it is not individually rational for the transactor with the superior information to provide a truthful and complete disclosure.
d. All of the above are true.
d
Economics
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Demand in the refreshment beverage market has been changing due to
A) changes in income. B) changes in taxes and subsidies. C) changes in the number of buyers. D) changes in tastes and preferences.
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When money is held as an asset, it is serving as
A. a standard of value. B. a standard of deferred payment. C. a medium of exchange. D. a store of value.
Economics