You Want to Add a New Room on Your House

question 116

Multiple Choice

You want to add a new room on your house, but you are not familiar with the local building contractors and are not sure who to consider for the job. If you ask your friends for referrals, you are using their past experience as a way to evaluate the ________ of the builders.

• A) efficiency wages
• B) moral hazard
• C) asymmetric information
• D) reputation

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Definitions:

Motorcycle

A two-wheeled motor vehicle that is faster and more fuel-efficient than a car, used for transportation, recreation, and sports.

Machinery

Machinery encompasses machines and their components, which are used in industry or manufacturing to perform tasks, including vehicles, equipment, and factory machines.

Mark-up

Markup is the percentage difference between the selling price and the cost price of a product or service.

Selling Price

The amount of money for which a product or service is sold to the customer, which may include costs and markup.