What does the term "lemon" means in the model of "Lemons problem" developed by "George Akeil of" in relation to used car market:-

CA Foundation · Business Economics · PYQS · May 2025
What does the term "lemon" means in the model of "Lemons problem" developed by "George Akeil of" in relation to used car market:-
(A) A. Only good quality used cars
(B) B. Both poor and good quality used cars
(C) C. Average quality used cars
(D) D. Scrapped used cars

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Both poor and good quality used cars

Topics: Public Finance

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