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.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Liquidity

The ability of an asset to be quickly converted into cash without significant loss in value.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits over a specific period, detailing its ability to generate earnings.