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 : Present Value and Rates of Return When

When the annual interest rate is 12 percent and a rental house can be expected to rent perpetually for $1,000 monthly, rough computation suggests the house contain a present value of: (1) $240,000. (2) $144,000. (3) $100,000. (4) $72,000. (5) $12,000.

Q : Altering the value of place for better

The trucker who hauls fresh oranges from Florida to the New York raises the value of oranges by directly and productively changing their: (i) Time of consumption. (ii) Location or Place. (iii) Ownership or Possession. (iv) Form and substance.

Q : Income floor by marginal tax rate A

A marginal tax rate of 75 percent and an income floor of ____ give in a break-even level of income of $8,000. (w) $2,000. (x) $4,000. (y) $6,000. (z) $16,000. Hello guys I want you

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 Value in Use Can someone

Can someone help me in finding out the right answer from the given options. The value in use of your favorite Frisbee is described whenever you: (1) Play Frisbee with dog. (2) Sell it for $100 to your elder brother. (3) Auction it off at the Frisbee convention. (4) Tr

Q : Demography of Wealth and Poverty

Poverty within the United States can be explained most properly by: (w) differences in effort and sacrifice. (x) voluntary choices of low income persons to consume more leisure at the expense of more income. (y) monopsonistic exploitation of labor by

Q : Demand of Substitute Goods I have a

I have a problem in economics on Demand of Substitute Goods. Please help me in the following question. All as well equivalent, raised prices for a new Toyotas will most instantly rise the: (1) Price cuts essential for ‘lemons’ to be sold b

Q : Short-run consequence of hurricanes

A probable short-run consequence of a devastating sequence of hurricanes smashing by Florida would be: (w) reductions within the prices of building materials. (x) raises the price of tickets at Disney World. (y) declining demand for Florida oranges due to higher price

Q : Making error of omission Numerous big

Numerous big publishing companies refused to publish a horror novel since the author was nameless. The author ultimately found a small publishing house to publish his book. The book sold millions of copies and produced hundreds of thousands of dollars in total revenue

Q : Short run supply of an industry The

The cranberry industry’s short-run supply is demonstrated as: (i) curve A. (ii) curve B. (iii) curve E. (iv) curve F. (v) curve G.

Discover Q & A

Leading Solution Library

Avail More Than 1416407 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1955912
Asked

3,689

Active Tutors

1416407

Questions
Answered

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

Submit Assignment