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:

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Bushels

A measure of volume commonly used in agriculture, especially in the United States, for quantifying crops like grains, fruits, and vegetables.

Market Price

The actual price at which any commodity is available in the market, determined by supply and demand.

Profit

The financial gain achieved when the revenue from business activity exceeds its costs and expenses.