Multiple Choice
That most used cars are sold by intermediaries (i.e. ,used car dealers) provides evidence that these intermediaries
A) have been afforded special government treatment,since used car dealers do not provide information that is valued by consumers of used cars.
B) are able to prevent potential competitors from free-riding off the information that they provide.
C) have failed to solve adverse selection problems in this market because "lemons" continue to be traded.
D) have solved the moral hazard problem by providing valuable information to their customers.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: External financing by _ should be more
Q2: Which of the following is NOT one
Q3: Which of the following is NOT a
Q4: Financial intermediaries' low transaction costs allow them
Q5: A problem for equity contracts is a
Q7: A borrower who takes out a loan
Q8: A clause in a mortgage loan contract
Q9: The primary loan customer of state-owned banks
Q10: Tools to help solve the adverse selection
Q11: Because of the weak systems of property