--%>
Assignment Help - homework help

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.

   Related Questions in Microeconomics

  • Q : Forward-Shifting of Tax This would be

    This would be most complicated for resource owners to forward-shift a tax onto: (w) capital. (x) accounting profit. (y) land. (z) labor. Can someone explain/help me with best solution about problem of Econo

    		•
  • Q : Find unskilled labor for no minimum

    When there is no minimum legal wage in market for unskilled labor, approximately: (w) 6,000 unskilled workers would earn about $5 per hour. (x) 3,000 unskilled workers would earn about $8 per hour. (y) 4,500 unskilled workers would ea

    		•
  • Q : Increase in Income Tax Progressivity

    When this figure demonstrated Lorenz curves for distribution of income after taxes and transfers, in that case it is UNTRUE of the Lorenz curves demonstrated in this demonstrated figure that: (1) line 0E0' represents a Lorenz curve of

    		•
  • Q : Capital Goods In the above diagram, the

    In the above diagram, the elimination of discrimination is best represented by

    		•
  • Q : Determine prices for demand of buyers

    Buyers' demand prices would be ____ and sellers' supply prices would be ____ when the U.S. restricted car imports to Q1. (w) P2 and P1. (x) P0 and P2. (y) P0 and P

    		•
  • Q : Increasing cost industries in long run

    When cranberry farming is an increasing constant cost industry and that firm is typical, in that case an increase within the market demand for cranberries will give in a long run equilibrium price as: (i) less than P1. (ii) greater than P2.

    		•
  • Q : Statement of Law of Demand The law of

    The law of demand defines that when a good’s price increases, its quantity demanded will drop: (1) No matter what occurs to other variables. (2) When all as well is supposed constant. (3) Since its demand curve shrinks. (4) If substitutes become

    		•
  • Q : Monopolistically competition in long

    When a monopolistically competitive firm is in long-run equilibrium, in that case this is unlikely for: (w) MR = MC. (x) P to be greater than MC. (y) P to be greater than the minimum of the long run average cost curve. (z) accounting

    		•
  • Q : Collective Bargaining-managers and

    The strikes tend to be resolved after worker’s savings trickle down to a discomfort region and there is an exhaustion of: (i) Public tolerance, causing government to set the fair settlement. (ii) Managers and inventories, causing the firms to increase their offe

    		•
  • Q : Price increases and price cut in

    Within the kinked-demand-curve model, there the firm faces: (w) a less elastic demand curve for price increases as well as a more elastic demand curve for price cuts. (x) a more elastic demand curve for price increases and a less elastic demand curve

    		•