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Jessica Likes to Participate in B2C E-Commerce, but Recently Has

question 109

Multiple Choice

Jessica likes to participate in B2C e-commerce, but recently has had a number of friends who have had problems shopping online. She wonders if it is safe to shop online and just how much she is compromising her privacy by doing so. Jessica is justifiably worried about the security of the personal information and credit card information she regularly supplies while shopping on the Web. In addition, she knows that merchants who market goods and services over the Internet sometimes secretly gather information and provide it to advertisers or other interested parties.
-Jessica has an always-on connection to the Internet.She has read about IP addresses and knows that some Web sites can track them.She would like to surf the Internet anonymously to protect her privacy.How can she do this?

Definitions:

Moral Hazard

A situation in which one party is more likely to take risks because they do not bear the full consequences of their actions, often due to asymmetrical information or misaligned incentives.

Economic Inefficiency

A situation in which resources are not allocated optimally, leading to wastage or less than maximum output.

Insurance Markets

Markets where individuals and entities can purchase insurance products to protect against various types of risk.

Principal-Agent Problem

A dilemma in economics where one party (the agent) is expected to act in the best interest of another (the principal), but may have personal incentives that conflict with this duty.