All parties to a transaction possess less than full information.

Some information possessed by the parties in a transaction may be false

One party entering a market transaction has more complete information than the other about the characteristics of a product.

A zero-sum game exists.

Adverse selection, which arises before the transaction occurs, and moral hazard, which occurs after the transaction.

Adverse selection and moral hazard, both of which occur before the transaction.

Adverse selection and moral hazard, both of which occur after the transaction.

Moral hazard, which arises before the transaction occurs, and adverse selection, which occurs after the transaction.

Adverse selection will increase economic efficiency.

Adverse selection will reduce economic efficiency.

Adverse selection does not have any impact on economic efficiency in a market.

Consumer wants will shift toward the goods left in the market.

when buyers know products inside out before purchasing it, high quality products may drive out low quality products (lemons) of the market.

when buyers know products inside out before purchasing it, low quality products (lemons) definitely can drive high quality products out of the market.

when buyers cannot judge a products quality before purchasing it, high quality products may drive out low quality products (lemons) of the market.

when buyers cannot judge a products quality before purchasing it, low quality products (lemons) may drive high quality products out of the market.

They will take this into account in the prices they are willing to pay.

They will not take this into account in the prices they are willing to pay.

They will be absolutely indifferent between cars, and will pay the same price for either type of car.

They will pay a price for a car that is always too high.