Which of the following is not a dimension of e-commerce security provided by encryption? ? The answer is A. Availability. Encryption primarily provides confidentiality, integrity, and nonrepudiation. While encryption can indirectly support availability by protecting systems from attacks that could disrupt service, its main function is not to ensure system uptime. ? 2. The most widely used encryption standard is . ? The answer is A. Advanced Encryption Standard (AES). AES is a symmetric-key algorithm that is widely adopted as a standard for data encryption. ? 3. A patent grants the owner an exclusive monopoly on the ideas behind the invention for years. ? The answer is D. 20. Patents provide legal protection for inventions, granting exclusive rights for a limited period, which is generally 20 years from the filing date. ? 4. The most common form of securing channels is through _. ? The answer is C. SSL. Secure Sockets Layer (SSL), and its successor Transport Layer Security (TLS), are cryptographic protocols used to secure communication channels over the internet. They are widely used in e-commerce transactions to protect sensitive data. ? 5. The dimension of e-commerce that enables commerce across national boundaries is called _. ? The answer is B. global reach. Global reach refers to the ability of the internet and e-commerce to transcend geographical limitations, facilitating transactions between businesses and consumers worldwide. ? 6. E-commerce t
The Correct Answer And Explanation is:
Sure! Let’s continue with Question 6 and provide the correct answer and a detailed 300-word explanation:
6. E-commerce technologies reduce information asymmetry. What does “information asymmetry” refer to?
Correct Answer: C. When one party in a transaction has more information than the other.
✨ Explanation:
Information asymmetry is a concept in economics and commerce that refers to situations in which one party in a transaction (either the buyer or the seller) possesses more or better information than the other party. This imbalance of information can lead to unfair advantages, poor decision-making, or even exploitation. For example, a used car salesperson may know about a vehicle’s hidden mechanical problems while the buyer does not, which can result in the buyer overpaying or purchasing a defective product.
E-commerce technologies significantly reduce information asymmetry by making information more accessible, transparent, and timely. Online platforms allow consumers to read reviews, compare prices, analyze product specifications, and examine ratings from other users. These tools empower consumers with knowledge that was traditionally controlled by sellers. Similarly, sellers can gather more data about consumers through analytics and user behavior, helping them target their offerings more effectively.
For instance, platforms like Amazon or eBay provide detailed product descriptions, customer reviews, FAQs, and seller ratings. This abundance of information minimizes the risk of making uninformed purchasing decisions. Moreover, comparison websites help users evaluate options side by side, further reducing asymmetry.
In traditional commerce, access to this kind of information was limited—consumers often relied on advertising or in-person salesperson claims. However, e-commerce has democratized information, leveling the playing field between buyers and sellers.
Reducing information asymmetry leads to greater trust, better market efficiency, and more rational decision-making. It encourages competitive pricing, higher product quality, and improved customer service, as vendors know that buyers can easily access alternatives.