Multiple Choice
Scenario: You walk into a used car lot to buy your first car. However, you are not sure of the quality of the cars in the lot and expect one-third of them to be of poor quality.
-Refer to the scenario above.Suppose you decide to buy a Toyota Corolla.You value the car at $10,000,but the car dealer values it at $8,500,which is not known to you.Which of the following is true in this case?
A) There are no gains from trade.
B) There are gains from trade.
C) The transaction will result in negative externalities.
D) The transaction will result in positive externalities.
Correct Answer:
Verified
Correct Answer:
Verified
Q109: Employee theft is an example of _.<br>A)
Q110: In a market with asymmetric information,a good
Q111: Jane started eating more junk food and
Q112: State provision of free healthcare may encourage
Q113: Which of the following is likely to
Q115: Health insurance companies often charge high premiums
Q116: _ occurs when one agent in a
Q117: The Harvard experiment in the mid-1990s found
Q118: A car insurance company pays 90 percent
Q119: A factory urgently needs to hire some