Consumers Use Search, Experience, and Credence Properties to Evaluate Services

question 149

Multiple Choice

Consumers use search, experience, and credence properties to evaluate services. Which statement is most accurate?

• A)Legal services are high in search credence properties, but medical services are high in experience properties.
• B)Haircuts are high in experience properties, but barbershops are high in search properties.
• C)Jewelry is high in search properties, although diamonds are high in credence properties.
• D)Television repair is more difficult to evaluate than restaurant meals.
• E)Child care is equally high in search, experience, and credence properties because the decision is so important.

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Definitions:

Zero-inflation

A situation where the price level of goods and services remains constant over time, indicating an absence of inflation in the economy.

Phillips Curve

An economic concept that describes an inverse relationship between rates of unemployment and corresponding rates of inflation, suggesting that higher inflation is associated with lower unemployment and vice versa.

1970s

A decade marked by significant events including economic turmoil, the oil crisis, social movements, and the Cold War's continuing tension.

Price Expectations

The beliefs or forecasts that consumers and producers have regarding future prices, which can influence their economic decisions.