Which of the Following Statements Is True Regarding Potential Information

question 181

Multiple Choice

Which of the following statements is true regarding potential information problems faced by consumers?

• A) Sellers have little incentive to inform customers about their products.
• B) The market provides consumers with a strong incentive to acquire information.
• C) Information problems tend to be most problematic for items consumers purchase regularly.
• D) In markets, people make all decisions with full information.

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Definitions:

Consequential Damages

Compensation awarded in a legal case for losses that do not directly arise from the wrongful act but are a secondary result of the act, such as lost profits or loss of opportunity.

Unconscionable

Referring to a contract or deal that is so unjust or overwhelmingly one-sided in favor of the party with superior bargaining power that it is deemed unenforceable under the law.

Seller's Remedies

Legal actions or steps that a seller can take if a buyer fails to fulfill their part of a purchase agreement.

Breaches

Acts of breaking laws, rules, agreements, or promises, leading to legal consequences.