"Lemons" in Used Car Market
2 I" S. u/ O5 g- |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. * t$ Z2 W$ }' f v, e' p5 r
1993 Ford Ranger, bilk, 4WD, a/cAM/FM/cass., showroom condition.
) Q' r7 g1 z& @' K# V8 v* d2 e% DCall 555-1234 after 5 p.m `' j5 g* ]9 P3 L5 i$ y1 w
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 $2,000 lower than the price for this model with this equipment listed in a used car guidebook. Instead of being ecstatic, however, you are suspicious.
2 T( g! c, L% k3 G8 kFor many products, when you must pay less than the going rate, you believe you are getting a great deal. This is not necessarily the case for used cars or other durable goods(washing machines and television sets, for example) because with expensive products-or, what is essentially the same thing, products with high replacement costs-you must be particularly careful about getting a "lemon." Or a product of substandard quality. ! k6 m; G1 |; b2 R
In addition to asking the price, the age of a car-or any other consumer durable-is a factor when you are trying to determine whether a seller is attempting to unload a lemon. While people have all sorts of reasons for wanting to sell their cars-even relatively new cars-most people hold off until they have put many thousands of miles on a car or until the used car is several years old. You would probably be as suspicious of a car that is "too new" as you would a car that is "too good " a deal. In fact, you are probably willing to pay a high price for a high-quality used car. While this price would certainly be acceptable to the seller, the competitive market might not facilitate such trades.
R6 t, X2 m7 ]! E& K0 s8 A1. The beginning of this passage assumes that college students 8 Y' ~9 w: X$ r+ r' m
A) are very clever but not very rich. ; O$ z- C% E4 z- \( C# V4 z
B) Are very capable but not very diligent. k/ o6 d8 t7 D8 e3 f6 u
C) Have limited material resources & B# P: V8 P; Q$ {! v x0 _# g
D) Are not rich. 0 D5 k1 R" H4 `7 s& {
2. The passage indicated that, sometimes when you find a product of an unexpectedly low price. $ \' R' w b% x V, q1 [1 w! ?
A) You are very happy.
: j) w- k# G' K& EB) You are rather suspicious.
4 J! [1 R0 @: Z: |1 lC) You are filled with happiness as well as surprise. 7 t! u; [, `! p3 h
D) You feel uneasy.
" W# G: O i* `9 X( ~4 i# ^3."Lemon" in this passage refers to
5 A+ T G' Y; p, v6 gA) a kind of fruit. m' L: I2 c9 Y6 T+ \
B) A kind of new car. |