Multiple Choice
As Akerlof argues, sellers who have a lemon, of course, know they have lemon but are not willing to tell the truth about the condition of their auto and, for the short selling period involved, can put their auto in a satisfactory condition that approximates the normal condition of the auto that are not lemons.In subsequent literature, this problem called the _______ problem.
A) informational asymmetry
B) agency
C) moral hazard
D) certification
Correct Answer:
Verified
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