The "lemons problem" is overcome in the used car market by
A) strict government regulation of private deals between individual buyers and sellers of used cars.
B) most used cars selling for well below their true values.
C) "lemon insurance" policies being offered by insurance companies.
D) the existence of used car dealers who are concerned about maintaining their reputations.
D
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Explain what increases in the price of oil have done to the exploration and extraction of oil from more costly sources of oil. What are some of these more costly sources of oil, and what happens to the quantity of proven oil reserves?
What will be an ideal response?
In the DMP model, a decrease in the unemployment insurance benefit
A) increases the unemployment rate. B) reduces labor market tightness. C) reduces the unemployment rate. D) reduces the vacancy rate.