If the Incentive to Take Advantage of a Conflict of Interest

question 26

Multiple Choice

If the incentive to take advantage of a conflict of interest is high

• A)removing the economies of scope that created the conflict may induce higher costs because of the decrease in the flow of reliable information.
• B)then the government must step in to remove the conflict.
• C)the costs of non-action in removing the conflict will always be higher than the cost of removing the conflict.
• D)firms will always step in and work to remove the conflict.

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Definitions:

Preprogrammed Learning Skills

Abilities or knowledge that are innately structured in an individual, potentially requiring activation or further development through experience.

Self-locomotion

The ability of an individual to move independently using physical capabilities, such as walking or crawling.

Intellectual Parents

Figures credited with the creation, development, and nurturing of ideas, theories, or intellectual movements.

Nurturing Environment

An environment that supports and promotes emotional, physical, and intellectual development.