Ratings and Reviews Can Fail at Mitigating Moral Hazard If

question 30

Multiple Choice

Ratings and reviews can fail at mitigating moral hazard if:

• A) ratings fully inform consumers of the quality of the product.
• B) reviewers always review honestly.
• C) not all products are reviewed.
• D) ratings are faked or exaggerated.

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Definitions:

Heredity

The transmission of traits from parents to offspring through genes.

Energy Level

Energy level refers to the amount of physical and mental vitality a person has, which can influence their ability to engage in activities and their overall performance.

Physical Stamina

Is the ability of the body to sustain prolonged physical effort without experiencing undue fatigue.

Locus of Control

A psychological concept that describes the degree to which individuals believe they have control over the events affecting their lives.