The _____ Occurs When a Low Rating on One Characteristic

question 92

Multiple Choice

The _____ occurs when a low rating on one characteristic leads to an overall low rating.

• A) halo effect
• B) horns effect
• C) contrast error
• D) similar-to-me error

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Definitions:

International Trade

The exchange of goods, services, and capital between countries and territories, influencing global economic activity.

Adverse Selection

A situation where sellers have information that buyers do not, or vice versa, leading to transactions that benefit the more informed party.

Death Spiral

A term often used in insurance and pricing strategies to describe a situation where pricing adjustments lead to reduced participation or purchase, necessitating further price increases, and thus accelerating a decline in demand or viability.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured as a part of a health care system.