1.Which of the following is a flaw with the assumption of full information?

a. Many products are too complex for consumers to understand.

b.Many products are too simple for consumers to understand.

c.Markets can provide consumers with product information.

d.None of the above.

2.Our probability judgments go astray for a number of reasons, including all except which of the following?

a.People believe that they exert control over purely chance events.

b.Generalizations are made on the basis of small sample findings.

c.Emphasis on "causation" results in the under weighing of evidence that is relevant.

d.We forget to take the "law of averages" into account.

3.Which of the following is not a problem with the assumption of rational utility maximization?

a. Few people are good at estimating probabilities.

b. People are irrational and inconsistent when weighing choices.

c. Many consumer markets are monopolies or oligopolies.

d. None of the above.

4.According to the contract view of business' duties to customers:

a.at least one of the parties to the contract must have full knowledge of the nature of the agreement.

b. Kant's arguments concerning morality are not justifiable.

c. neither party to a contract must be forced to enter the contract under duress or undue influence.

d. a business may only misrepresent the facts when it will be in the customer's best interests.

5.Which of the following is not one of the four main moral duties of a business, according to the contractual theory?

a.The duty to exercise due care.

b.The duty to comply with the terms of the contract.

c.The duty to disclose the nature of the product.

d. The duty to avoid the use of duress.