Consider a second hand car market where three types of cars are being sold: High quality (H), medium quality (M) and low quality (L). Sellers value an H at $2000, an M at $1200 and an L at $800, whereas buyers value an H at $1800, an M at $1600 and an L at $1400. As discussed in the ”Akerloff’s Lemons Market”, sellers are able to distinguish between different quality cars but buyers are not and a buyer believes that inthismarket40%ofthecarsisanH,30%of thecarsisanM and30%ofthecarsis an L. (a) (10 points) Determine which type of cars will be sold at the efficient allocation. (b) (10 points) Determine which type of cars will be sold at the market equilibrium.

Which best explains why the supreme court’s decision in plessy v. ferguson was unconstitutional? the supreme court’s ruling allowed states to deny equal protection to any person within its jurisdiction. since the 14th amendment did not make concessions for people born outside the us, the supreme court’s decision could not be applied. the supreme court’s decision gave individual states the freedom to make their own laws in relation to non-whites. since segregation laws did not provide equal protections or liberties to non-whites, the ruling was not consistent with the 14th amendment.

The economy of the united states is best described as

Voters commonly condemn politicians for being insincere, but politicians often must disguise their true feelings when they make public statements. if they expressed their honest views—about, say, their party's policies—then achieving politically necessary compromises would be much more difficult. clearly, the very insincerity that people decry shows that our government is functioning well. which of the following, if true, most seriously undermines this reasoning? (a) achieving political compromises is not all that is necessary for the proper functioning of a government. (b) some political compromises are not in the best long-term interest of the government. (c) voters often judge politicians by criteria other than the sincerity with which they express their views. (d) a political party's policies could turn out to be detrimental to the functioning of a government. (e) some of the public statements made by politicians about their party's policies could in fact be sincere.