--%>

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 : Supply of labor at different wage rates

    The time people are willing and capable to work at different wage rates throughout a given period is termed as the: (1) supply of labor. (2) labor force participation rate. (3) marginal product of labor. (4) labor theory of value.

    Q : Attract aggressive competition by high

    There is substantial evidence which: (w) size alone protects modern corporations from competitive pressures. (x) big unions manipulate government more than big business does. (y) the marketplace serves business firms better than consumers. (z) high pr

  • Q : Decreased market demand for generic 2×4s

    Decreased market demand for generic 2×4s as in illustrated graph would result within a(n) ___________ into the price of 2×4s as well as a(n) ___________ in this lumber mill’s profit-maximizing output. (w) increase; decrease. (x) incr

  • Q : Problem regarding Subjective Prices

    Mike trades 6 vintage baseball cards for the Jake’s original Ty Cobb card. When Mike’s six cards had equivalent total market value with Jake’s Ty Cobb card, then this trade would show: (i) Unfair incentive. (ii) Demand price. (iii) Opportunity cost.

  • Q : Supply law and it's factors State the

    State the Law of supply and explain the factors that affecting supply of commodity

  • Q : Elastic Demand for Labor At existing

    At existing wages the LEAST elastic demand for the labor is most likely faced by: (i) Unskilled harvest workers. (ii) Garment workers. (iii) Assembly line workers. (iv) Dentists. Can someone please help me in findi

  • Q : Reading Production Possibilities

    I have a problem in economics on reading the Production Possibilities Frontiers graph. Please help me in determining the right answer from the following question. The graph below depicts the mythical country of the Sandwichia’s:

    Q : Relative concept about poverty A

    A predictable reluctance through modern welfare recipients to trade all they own for the material possessions of a rich person by a much earlier period would be evidence which poverty is: (w) easily solved by income redistribution pro

  • Q : Maximizes profits when price equal to

    A purely competitive firm will turn out where P = MC since this: (w) is good for society. (x) is all which is permitted through law. (y) maximizes profits. (z) permits price adjustment although not quantity adjustment.

    Q : Market Adjustments in outputs and

    Outputs and average prices for CDs and DVDs both rose throughout 1999 to 2000 (just before file sharing became ordinary), implying such that: (1) supply of prerecorded music should have grown. (2) law of demand does not apply to music. (3) demand for