Multiple Choice
Claudia went to a department store to buy a few things for her new house.She found that several items in the store were on discount and decided to make the most of the deals offered.However,when she started using the things that she bought on discount,she realized that many of them were defective.This happened because of the presence of ________.
A) positive externalities
B) negative externalities
C) asymmetric information
D) the moral hazard problem
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Why do the owners of good-quality used
Q3: Scenario: The market for used cell phones
Q4: Some health insurance companies pay only 70
Q5: The probability of being detected after committing
Q6: More people started building houses in the
Q8: In a market with asymmetric information,gains from
Q9: What is signaling?
Q10: Why do health insurance companies ask their
Q11: Because warranties are potentially _,low-quality goods are
Q12: Distinguish between two kinds of asymmetric information.