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    Macroeconomics Study Set 68
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    Exam 4: Market Failures Caused by Externalities Asymmetric Information
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    When Sellers Are Unable to Distinguish "Good" Buyers from "Bad
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When Sellers Are Unable to Distinguish "Good" Buyers from "Bad

Question 144

Question 144

Multiple Choice

When sellers are unable to distinguish "good" buyers from "bad" ones, they face the problem of


A) moral hazard.
B) adverse selection.
C) externalities.
D) diminishing utility.

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