Question

In the used car market with warranties, the market for lemons (poor quality used cars)is ________ and the market for good cars is ________.

Accepted Answer

A) efficient; efficient 
B) inefficient because of over-supply; inefficient because of under-supply 
C) inefficient because of over-supply; inefficient because of over-supply 
D) efficient; inefficient because of under-supply 
E) inefficient because of over-supply; efficient 
A) efficient; efficient 
B) inefficient because of over-supply; inefficient because of under-supply 
C) inefficient because of over-supply; inefficient because of over-supply 
D) efficient; inefficient because of under-supply 
E) inefficient because of over-supply; efficient

In the used car market with warranties, the market for lemons (poor quality used cars)is and the market for good cars is .

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 12: Markets With Private Information