Question

Which of the following is the main reason of consumer exploitation ?

• A. Limited information
• B. Wrong information
• C. Illiteracy
• D. All of these

Hint:

Consumer exploitation often stems from an imbalance of knowledge and power between the seller and the buyer. All the options listed contribute to this imbalance, making the consumer vulnerable.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
Consumer exploitation refers to situations where consumers are treated unfairly or dishonestly by sellers or service providers. The question asks for the main reasons behind this exploitation.
Step 2: Detailed Explanation:
Let's analyze each option as a cause of consumer exploitation:
(A) Limited information: When consumers have incomplete or insufficient information about a product's quality, price, or features, they cannot make an informed choice and can be easily overcharged or sold inferior goods.
(B) Wrong information: This involves actively misleading consumers through false advertising or incorrect claims about a product. This is a direct form of exploitation.
(C) Illiteracy: Consumers who are illiterate may not be able to read contracts, terms and conditions, or product warnings. This makes them highly vulnerable to being cheated.
Since all three factors—lack of information, misleading information, and the inability to process information—contribute significantly to consumer exploitation, "All of these" is the most comprehensive answer.
Step 3: Final Answer:
Limited information, wrong information, and illiteracy are all major reasons for consumer exploitation.