Which of These Is an Example of Plasticity

question 138

Multiple Choice

Which of these is an example of plasticity?

• A) a man who consistently drives his car too fast
• B) a teenager who spends a summer in Chile and learns to speak Spanish
• C) a woman who leaves her job to stay home with her newborn
• D) a person who is in a coma

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Definitions:

Buyer

An individual or entity that purchases goods or services from another entity, typically in the context of an economic market.

Seller

An individual or business that offers goods or services for sale to consumers or other businesses.

Lemons Problem

A phenomenon where the presence of information asymmetry in a market leads to low-quality products being sold, as sellers have more information about the product than buyers.

Moral-Hazard

A situation where one party engages in risky behavior knowing that it is protected against the risk because another party will bear the cost.