The "lemons" problem is used to explain the concept of:
A)complete information.
B)adverse selection.
C)moral hazard.
D)produce markets.

Question

Quizplus · Accepted Answer

The "lemons" problem, introduced by economist George Akerlof, explains how adverse selection can occur in markets with asymmetric information, where sellers have more information about the quality of a product than buyers. This can lead to a market where only low-quality products ("lemons") are sold.

The "Lemons" Problem Is Used to Explain the Concept Of