An Information Cascade Occurs When ________

question 10

Multiple Choice

An information cascade occurs when ________.

• A) the buyer of a good has more information than the seller and takes hidden actions
• B) the seller of a good has more information about the hidden characteristics of the good than the buyer
• C) people make the same decisions as others without focusing on private information
• D) people have contradictory information about a good they want to consume

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Definitions:

Sensorimotor

The first stage of Piaget’s theory of cognitive development, from birth to roughly 2 years, where infants understand the world through their actions and sensory experiences.

Secondary Circular Reaction

A stage in Piaget's theory of cognitive development where infants repeat actions that are pleasurable or produce interesting results, typically occurring from 4 to 8 months of age.

Primary Circular Reaction

An early developmental stage where infants repeat an action that they accidentally discovered, focusing on their own body.

Tertiary Circular Reaction

A stage in Piaget's theory of cognitive development during which toddlers experiment with new behaviors to see the outcomes, typically observed around 12 to 18 months of age.