Which of the Following Statements Is Most Accurate Regarding the Utility

question 25

Multiple Choice

Which of the following statements is most accurate regarding the utility of personality traits to predict specific behaviours?

• A) Narrow traits are more effective than broad traits at predicting specific behaviours.
• B) Both broad and narrow traits are equally effective at predicting specific behaviours.
• C) Neither broad nor narrow traits are effective at predicting specific behaviours.
• D) Broad traits are more effective than narrow traits at predicting specific behaviours.

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Definitions:

Informational Asymmetry

A situation where one party in a transaction has more or superior information compared to another. This often leads to an imbalance in power or decision-making.

Hidden Action

A situation in principal-agent relationships where the agent's actions are not fully observable by the principal, potentially leading to agency problems.

Hidden Characteristic

A quality of a product or service that is not immediately observable to the buyer, often leading to information asymmetry in the market.

Transitive

In logic and mathematics, transitive refers to a relation where if it applies between successive pairs in a sequence, it also applies between any two members taken in order. For example, if A is larger than B, and B is larger than C, then A is larger than C.