Kornai argued that transition from socialism to capitalism requires the creation of democracy

Suppose you were competing in a sealed-bid, second-price auction for a Vermeer painting, which you happen to value at $100,000 . What bid should you submit?

a. Exactly $100,000 b. Somewhat lower than $100,000 depending on the number of other bidders c. Somewhat higher than $100,000 depending on the number of other bidders d. Cannot say which of a, b, or c is right without further information

Why is the study of asymmetric information associated with the market for "lemons"?

A) Sellers of citrus fruit—lemons, oranges, grapefruit—know the difference between bad fruit and good fruit; buyers do not have this information. B) Because there is little advertising in the market for lemons, buyers have difficulty determining the quality of lemons before they are purchased. C) Potential buyers of used cars have difficulty separating good used cars from bad used cars; bad used cars are often referred to as "lemons." 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."