Which of the Following Is an Example of a Transaction

question 42

Multiple Choice

Which of the following is an example of a transaction that is made even though complete information is not possible?

• A) Joe buys a puppy in hopes that the puppy will be his hiking companion for the next 20 years.
• B) Alex buys house insurance and has never filed a claim.
• C) Mike saves his money by putting it in a mutual fund.
• D) All of these are examples of transactions that must be made with incomplete information.

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Definitions:

Glocalization

The simultaneous homogenization of some aspects of life and the strengthening of some localdifferences under the impact ofglobalization

Neoliberal Globalization

A policy that promotes private control of industry, minimal government interference in the running of the economy, the removal of taxes, tariffs, and restrictive regulations that discourage the international buying and selling of goods and services, and the encouragement of foreign investment.

McDonaldization

A form of rationalization. Specifically, it refers to the spread of the principles of fast-food restaurants, such as efficiency, predictability, and calculability, to all spheres of life.

Jihad

In Islam, a term referring to the spiritual struggle against sin, but often misconstrued to mean holy war; the concept has both nonviolent and violent interpretations.