Which of the Following Is Not a Way in Which

question 30

Multiple Choice

Which of the following is not a way in which consumers can benefit from report cards?

• A)Easy identification of high quality sellers
• B)Increases in demand elasticity incent sellers to improve quality
• C)Good report cards lead to more advertising
• D)Report cards improve sorting by consumers
• E)Consumers can more easily identify quality sellers

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Definitions:

Output Market

Marketplaces where finished goods or services are sold to consumers, as opposed to input markets where raw materials are bought.

Consumers

Individuals or entities that purchase goods or services for personal use, not for manufacture or resale.

Firms

Business entities that produce goods or provide services with the aim of making a profit.

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on financial risk to do so.