"Lemons" in Used Car Market8 d, A- O% ^6 D& p& S
Suppose that you, a college student of somewhat limited means, are in the market for a used pickup truck. The following ad in a local used car publication catches your eyes.- ^- ], E3 Y. n2 L# z& O _' b
1993 Ford Ranger, bilk, 4WD, a/cAM/FM/cass., showroom condition.# M: {9 k$ ^( }6 ?
Call 555-1234 after 5 p.m
0 {0 x( |; Q6 k- `+ Y+ Q& AThis is exactly the kind of vehicle you want, so you call to inquire about the price. The price you are quoted over the phone is $2,000 lower than the price for this model with this equipment listed in a used car guidebook. Instead of being ecstatic, however, you are suspicious.
' X7 ]) ?" \, \, eFor many products, when you must pay less than the going rate, you believe you are getting a great deal. This is not necessarily the case for used cars or other durable goods(washing machines and television sets, for example) because with expensive products-or, what is essentially the same thing, products with high replacement costs-you must be particularly careful about getting a "lemon." Or a product of substandard quality.# f6 S. ~# x1 F4 w
In addition to asking the price, the age of a car-or any other consumer durable-is a factor when you are trying to determine whether a seller is attempting to unload a lemon. While people have all sorts of reasons for wanting to sell their cars-even relatively new cars-most people hold off until they have put many thousands of miles on a car or until the used car is several years old. You would probably be as suspicious of a car that is "too new" as you would a car that is "too good " a deal. In fact, you are probably willing to pay a high price for a high-quality used car. While this price would certainly be acceptable to the seller, the competitive market might not facilitate such trades.
% c. W0 C* T/ s4 ~1. The beginning of this passage assumes that college students
: S# m& l" f: [) QA) are very clever but not very rich.5 `0 {; B+ z6 |; t/ A$ e+ o
B) Are very capable but not very diligent.
- M+ i7 y( Y9 s# M+ ]C) Have limited material resources$ V& E( I3 l; |" ^; \: R
D) Are not rich.; J5 }- I* u" ]; \4 }/ q- I- U. K
2. The passage indicated that, sometimes when you find a product of an unexpectedly low price.6 U5 e9 R' n+ m! q
A) You are very happy.$ G; f& d$ k' a7 M
B) You are rather suspicious.
0 o$ L8 f7 A. J* B8 x. AC) You are filled with happiness as well as surprise.
4 x! x5 g4 h. W5 D+ p# C1 ]( BD) You feel uneasy.$ T8 m- f; Z3 f- B T
3."Lemon" in this passage refers to8 P. Y- I6 m) B1 A) k+ |
A) a kind of fruit.
/ E" w( p1 e6 L! p6 HB) A kind of new car. D# X5 X' r/ u0 j
C) A kind of expensive and high-quality car.# h9 W8 [/ o, Z; Q
D) A product of inferior quality.
8 K- u- v, N: j& A! c4.If you want to know if the seller is trying to unload a lemon, you
( U* E, Y0 K4 ]6 T4 y+ x2 X" FA) take the age of the car into consideration.$ i2 e" q v5 E* O9 L
B) Take the price of the lemon into consideration" I1 b9 p5 H# k3 \% u/ Q
C) Consider how many miles the car has run.
7 \! d+ I/ o1 v" y: S/ KD) Consider both the price as well as the age of the car.
9 H* e4 J; `4 e5.It can be concluded from the passage that in the used car market,7 X) f, L8 [ r, Q* ~ o, E
A) used cars are generally cheap.
n, b7 C: C5 M- g% k o$ \# VB) Used cars are generally expensive+ a7 ~3 c( h7 K6 x8 [# L( x- O1 @% v
C) Used cars are actually brand new
" i) A( h, C& ?% u ED) Car buyers are willing to pay a high price for a used car.7 m) x+ I$ y5 R8 o n5 N
KEY: DBDDA |