--%>

Adverse Selection as a classifiable

Which of the given below conditions is most evidently classifiable as the adverse selection? (i) The company manufactures a miracle weight loss solution guarantee enduring weight loss, however in realism the solution only rids surplus water weight for the short period of time. (ii) Jenny’s friends come to the diner where she works and Jenny lets them encompass free food. (iii) Whenever Sam, the supervisor, is not working at bookstore, his staffs read magazines, rather than shelving books, and are impolite to the customers. (iv) The undercover officer recognizes that the car dealer sells cars with odometers which have been wound backwards and tries to purchase from the dealer in sting operation to fix the dealer.

Find out the right answer from the above options.

   Related Questions in Microeconomics

  • Q : Emphasis on equality of opportunity An

    An emphasis on equality of opportunity, although not essentially equality of result, is a center-piece of a system of distribution termed as: (1) meritocracy. (2) laissez faire capitalism. (3) feudalism. (4) socialism. (5) syndicalism

  • Q : Indeterminable market supply curve For

    For a monopoly firm a market supply curve is: (w) steeper than the market supply curve of a competitive industry. (x) indeterminable because profit-maximizing quantities with profit maximizing prices are determined concurrently, and depend upon costs

  • Q : Marginal social costs exceed the

    When governments compelled pharmaceutical producers to manufacture and sell at least Q3 penicillin, in that case the: (1) purely-competitive firms which produced penicillin would experience persistent economic profits. (2) resulting inadequate antibiotic tr

  • Q : Total revenue on profit-maximizing

    Total revenue roughly for the profit-maximizing lumber mill equivalents: (i) $1700 daily. (ii) $2500 daily. (iii) $3500 daily. (iv) $4590 daily. (v) $6000 daily.

    Q : Present Value of Capitalization The

    The present value of $1000 two years by now is: (w) $1000. (x) greater than $1000. (y) less than the present value of $1000 one year by currently. (z) $1,210. Hey friends please give your opinion for the problem of Economics that i

  • Q : Import cars in equilibrium When the

    When the import car market is in equilibrium prior to the government limits car imports to Q1, the price that buyers will reimburse for an import: (1) Drops/falls from P0 to P1. (2) Is stable, although dealer gains fall by Q0 to Q1. (3) Increases from P0 to P2. (4) Ex

  • Q : Generate additional unit of output

    Assume that a firm has some market power but cannot price discriminate. The change in total revenue while the firm generates an additional unit of output is: (i) a downward-sloping curve below the demand curve. (ii) z

  • Q : Cost and revenue assume the firm is a

    assume the firm is a price taker and faces a market price of €60 per unit. draw the AR and MR curves

  • Q : Negative price cross elasticities of

    When two goods have negative price cross elasticities of demand, in that case the goods are: (1) inferior goods. (2) luxury goods. (3) complementary goods: (4) substitute goods. (5) normal goods. Hey friends please

  • Q : Arising of perfect price discrimination

    Perfect price discrimination would arise when a firm: (1) extracted full consumer surpluses from its customers. (2) permitted monopolistic customers quantity discounts. (3) redistributed real income among consumers. (4) inefficiently allocated its res