Chapter 10 Econ

Which of the following terms describes when firms with high scores tend to have more than their share of luck in rankings?

Mean reversion

Conflicts of interest in the certifier market often can lead to which of the following?

Certification Bias

Products for which consumers cannot easily evaluate quality even after purchasing and using the product are called:

Credence goods

Which of the following is not a reason for customer survey bias in quality measures?

Customers often lie in consumer surveys

Unraveling is an economic theory that describes which of the following?

Even low quality sellers will disclose their product quality

Products for which consumers cannot easily compare product characteristics and value information from others are called:

Experience Goods

Which of the following best describes the consumers' shopping problem?

Finding the seller that offers the highest value of B-P

Which of the following is another term for "teaching to the test"?

Multitasking

Which of the following is measured by a report card that assesses product performance?

Outcomes

Motivation bias and survivor bias are most common in which of the following?

Scorecards on horizontally differentiated products

Products for which consumers can easily obtain the information required to compare alternatives are called:

Search Goods

When consumers learn about one seller at a time it is known as a:

Sequential Search

Why do consumers often rely on friend's advice when shopping for experience goods?

They know their friend's tastes

Which of the following serves as a voluntary signal of quality?

Warrantee

When is a signal informative?

When it is more profitable for the high quality firm to offer it