Adverse Selection problem, I have a problem in economics on Adverse Selection problem.

Adverse Selection problem

I have a problem in economics on Adverse Selection problem. Please help me in the following question. When Sally Sleaze sells Terry Tonedeaf a low quality boom-box by advertising it as ‘top of the line’, there is a trouble of: (i) Irrational ignorance. (ii) Moral hazard. (iii) Adverse selection. (iv) Paradoxical value.

Select the rightmost option from the above.

View Complete Question

Related Questions in Microeconomics

Q : Competitive Markets-Unions of labor Can

Can someone please help me in finding out the accurate answer from the following question? The purely competitive labor markets are not characterized through: (w) Most of the individual buyers and sellers of the labor services. (x) Wages equivalent to the marginal res

Q : Analysis deregulation caused the

Choose the right answer of the following problem. "The government deregulated the electricity industry in California and a shortage of electricity occurred soon . It is clear that the deregulation caused the shortage." This statement requires careful analysis becau

Q : Price discriminate for maximizing profit

Monsieur Cournot has a monopoly on an artesian well from that flows tasty spring water reputed to have medicinal properties. To ignore incurring variable costs, he is adamants that customers bring their own pails and also fill them in

Q : Absolute and relative price is the

is the price in the law of demand an absolute price or a relative price

Q : Central problems of an economy

Elucidate the central problems of an economy: A) What to produce? B) How to produce? C) For whom to produce? Answer:

Q : Microeconomics Question #2 Consumer

Question #2 Consumer Demand. How to answer questions from a-g iii. I belive the MRS is 2y/x for B. But not sure

Q : Problem on buying a used car You desire

You desire to purchase a used car. The dealer knows accurately how well the car works and how much it must cost, although you are not sure of its value. This is an illustration of: (i) Asymmetric information. (ii) Dealer rights. (iii) Predatory pricing. (iv) First mov

Q : Demand curves of monopolistic

Monopolistic competitive firms face: (w) perfectly elastic demand curves. (x) perfectly inelastic demand curves. (y) downward sloping demand curves. (z) the industry demand curves. Hello guys I want your advice. Pl

Q : Effects of higher real interest rates

Higher real interest rates give in: (w) greater incentives to save and decreased incentives to invest. (x) increases in the amount of liquidity desired by financial investors. (y) increases in the optimal debt-equity ratio of a corporation. (z) decrea

Q : Problem on greatest monopsony power The

The Employers would have the maximum monopsony power in dealing with: (i) White collar labor in the metropolitan area. (ii) Unionized workers. (iii) Professional athletes. (iv) Blue collar labor in metropolitan area.

Discover Q & A

Leading Solution Library

Avail More Than 1450515 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1930912
Asked

3,689

Active Tutors

1450515

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment