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Which of the Following Is NOT True About the Principle

Question 34

Multiple Choice

Which of the following is NOT true about the principle of caveat emptor?


A) literally means "let the buyer beware"
B) literally means "let the seller beware"
C) assumes perfect knowledge on the part of participants in the marketplace
D) assumes seller and buyer have equal information
E) It assumes that buyers and sellers will act rationally, making correct economic choices without government interference.

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