Narrative 22-1 Katie Owns a Boutique That Sells High-End Women's Clothing and Clothing

question 382

Multiple Choice

Narrative 22-1
Katie owns a boutique that sells high-end women's clothing and accessories. Shana works part-time at the boutique and frequently is the only employee in this small store. Katie pays Shana a wage that is higher than the market wage for this type of job. When the store is not full of customers, Shana diligently works on displays and cleans to keep the store looking its best. Magda is a customer in the store who asks Shana's opinion on the quality of some jeans she is considering purchasing. Even though she's had several other customers return them due to flaws, Shana tells Magda the quality is great. Belinda is another customer who is returning a necklace without revealing that she lost a gem from it while wearing it.
-Refer to Narrative 22-1. Which of the ladies is causing a moral hazard problem?

• A)Shana
• B)Katie
• C)Belinda
• D)Magda

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Definitions:

Invention Speculation

The act of predicting or theorizing about future inventions and technological advancements without concrete evidence.

Technological Determinist

A perspective suggesting that technological development shapes societal change, including cultural and social structures.

Technological Change

Involves the innovation and adoption of new technologies or the improvement of existing technologies, significantly impacting society and the economy.

Creative Outputs

Refers to the generation of ideas or products that are both original and valuable in a particular social context.