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    Exam 14: Imperfect Information: Adverse Selection and Moral Hazard
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    The Lemons Problem May Cause Markets with Asymmetric Information
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The Lemons Problem May Cause Markets with Asymmetric Information

Question 53

Question 53

Multiple Choice

The lemons problem may cause markets with asymmetric information


A) to reduce the number of low-quality goods.
B) to reduce the number of high-quality goods.
C) to increase the number of high-quality goods.
D) to increase the average quality of goods.

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