"Lemons" in Used Car Market
: x5 q4 |- E) q9 k- D ASuppose 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.# G2 p+ @' h2 J0 Q/ C6 E; S7 ]
1993 Ford Ranger, bilk, 4WD, a/cAM/FM/cass., showroom condition./ p7 J0 z5 H7 @/ r) D! [" E8 U
Call 555-1234 after 5 p.m/ l- k; e1 O/ E
This 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 $2,000 lower than the price for this model with this equipment listed in a used car guidebook. Instead of being ecstatic, however, you are suspicious.: x5 V0 w7 K( ?; x4 }" ~5 |
For many products, when you must pay less than the going rate, you believe you are getting a great deal. This is not necessarily the case for used cars or other durable goods(washing machines and television sets, for example) because with expensive products-or, what is essentially the same thing, products with high replacement costs-you must be particularly careful about getting a "lemon." Or a product of substandard quality.5 a6 [. B5 K; k, ~
In addition to asking the price, the age of a car-or any other consumer durable-is a factor when you are trying to determine whether a seller is attempting to unload a lemon. While people have all sorts of reasons for wanting to sell their cars-even relatively new cars-most people hold off until they have put many thousands of miles on a car or until the used car is several years old. You would probably be as suspicious of a car that is "too new" as you would a car that is "too good " a deal. In fact, you are probably willing to pay a high price for a high-quality used car. While this price would certainly be acceptable to the seller, the competitive market might not facilitate such trades.
Y7 {# z t# g. Q1. The beginning of this passage assumes that college students- {6 B+ C+ Z: G1 n5 N
A) are very clever but not very rich.7 X; {! u8 N3 l$ r
B) Are very capable but not very diligent.
+ S* P. G0 }$ W o" @' iC) Have limited material resources
7 y- B6 ]% U" K5 r# |D) Are not rich.) f8 j! I. V$ E- P2 {5 U {
2. The passage indicated that, sometimes when you find a product of an unexpectedly low price.
$ {* o } w/ ?: e' jA) You are very happy.
. X3 f! }. R' j3 }$ ]* r* {B) You are rather suspicious.
& U2 m7 y3 q0 [. P# ~- ^- y/ F9 j0 pC) You are filled with happiness as well as surprise.4 r$ y6 w9 ^/ o; D) m- q
D) You feel uneasy.
2 L/ Q, @/ H3 _ }3."Lemon" in this passage refers to
! a: K& u7 K" MA) a kind of fruit.: \4 `" f2 E5 ^$ z
B) A kind of new car.
) P2 W* B& Z# K$ aC) A kind of expensive and high-quality car.
7 d+ E3 |6 A/ O# n4 _% HD) A product of inferior quality.& {7 T f4 `, y7 Z
4.If you want to know if the seller is trying to unload a lemon, you
3 D8 N7 i' K3 ]! O' A# X, ^/ gA) take the age of the car into consideration.
5 i' O, `9 A2 W% L( Q; h. N gB) Take the price of the lemon into consideration* A6 S4 b- k4 o) x
C) Consider how many miles the car has run.
% x0 X; x3 [" \2 v$ I& ~D) Consider both the price as well as the age of the car.
2 d+ n% Z4 F/ z7 Z! ]/ ?$ m5.It can be concluded from the passage that in the used car market,
) C2 \* s* c4 |- Y1 @4 tA) used cars are generally cheap.; V9 Y9 E% F, e
B) Used cars are generally expensive- _9 D! f4 S& w) {8 f# i
C) Used cars are actually brand new2 v; N5 R2 }* P2 ~" K) N* Z4 B
D) Car buyers are willing to pay a high price for a used car.
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