Which Term Refers to the Systematic Distortion of Information as It

question 16

Multiple Choice

Which term refers to the systematic distortion of information as it passes through the channel that causes members to overreact to small changes in end-user demand?

• A) Bullwhip effect
• B) Feedback looping
• C) Cross functionality
• D) Reverse logistical error
• E) Misaligned systems effect

---

Definitions:

Rationing Mechanism

A method or system used to allocate scarce resources, goods, or services among people, typically in situations of short supply.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are similar in nature, leading to competitive prices.

Economic Policies

Actions taken by a government to influence its economy, including fiscal policy, monetary policy, and trade policy.

Inefficient Rationing

A situation where goods or services are distributed or allocated in a way that does not maximize utility or welfare, often due to non-market forces such as regulations.