Ratings Systems Can Be Manipulated and Therefore Do Not Always

question 31

True/False

Ratings systems can be manipulated and therefore do not always eliminate moral hazard.

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, often within a specific domain or institution.

Communism

Marx’s hypothetical economic system in which ownership of the means of production is collective and workers’ labour is not exploited.

Marx's Ideas

Refers to the philosophical and economic theories of Karl Marx, which include the critique of capitalism and the advocacy for a classless society.

Socialism

An economic system in which raw materials and the means of production are collectively owned.