Several Artists in Charleston,South Carolina,show and Sell Their Work in an Art

question 83

Multiple Choice

Several artists in Charleston,South Carolina,show and sell their work in an art gallery downtown.The gallery is owned by an art lover who does not buy the paintings but displays the work of various artists.She collects a percentage on each piece sold.In terms of the marketing channel,the gallery is a(n)

• A)ultimate consumer.
• B)manufacturer.
• C)wholesaler.
• D)agent.
• E)clearinghouse.

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Definitions:

Credit Histories

Records that document an individual's or company's past borrowing and repaying behaviors, including information on late payments and bankruptcy.

Moral Hazard

The situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur the cost.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable alternatives in transactions.

Efficient Outcomes

Situations in economics where resources are allocated in a way that maximizes the net benefit to society, meaning no individual can be made better off without making someone else worse off.