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Alecsey [184]
3 years ago
10

John and Jack are both trying to sell a used car to Jim. John's car is a lemon, a car that has a serious but nonobvious problem.

Jack's car is a cherry, a car that has no problems. Jim cannot tell the difference between the cars. Economists say this information problem might be solved with signaling. Who has an incentive to find a way to signal quality?
Social Studies
1 answer:
Reptile [31]3 years ago
3 0

The correct answer is Jim

Explanation: Jim is the most interest on that because he is the one who wants to buy.

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In this example Carlos' grandfather was an agricultural worker, Carlos' father worked as a clerk and because of their efforts, Carlos' is now able to graduate from college and medical school. We can see how Carlos' family has gone through changes in social status thanks to the efforts and opportunities they created.

Thus, this is an example of intergenerational mobility.

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