A Warranty on a Used Car Is a Credible Signal

question 65

Multiple Choice

A warranty on a used car is a credible signal of quality because:

• A)many used cars come with warranties.
• B)sellers who offer warranties are more honest than most people.
• C)it would cost the seller too much to honor a warranty on a low-quality car.
• D)it indicates the car is of average quality.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed.

Infants

Very young children, typically those under one year of age, in their earliest stages of development.

Hidden Objects

Objects that are not visible to the observer because they are covered, concealed, or not within the line of sight.

Symbolic Representation

The use of symbols or abstract signs to represent ideas, objects, or actions in cognitive processing and communication.