Read the following to prepare for this week:
· Survey of Economics, Chapter 9: Imperfect Information, External Benefits, and External Costs
Video:
Watch the following video(s), which you can access in the Weekly Media object or by clicking on the link(s) below: and answer the question.
MIT OpenCourseWare video lecture series, “Uncertainty”
11.3 Test your Knowledge (Question):
Q1: Discuss how asymmetric information present in second hand car market, often leads to adverse selection for buyers.
