Moral hazard occurs when a person''s behavior changes

Assignment Help Business Economics
Reference no: EM13987037

Moral hazard occurs when a person's behavior changes in a way that

a- is inherently dangerous

b- raises the net welfare of society

c- is immoral

d- increases the chance of an unfavorable outcome

e- increases the likelihood of profit

Reference no: EM13987037

Questions Cloud

Find the var for one day : Find the VAR for one year at a probability of 0.05. Identify and use the most appropriate method given the information you have. Using the information you obtained in part a, find the VAR for one day.
Calculate focal length of the mirror formed by shiny bottom : Calculate the focal length of the mirror formed by the shiny bottom of a spoon that has a 3.60 cm radius of curvature. What is its power in diopters?
Minimum total annual inventory cost : A store stocks beer mugs and the demand for these beer mugs is 10,200 per year. It costs $120 per order of the mugs and it costs $1.35 per mug per year to keep the mugs in stock. Once an order is placed, it takes seven days to receive the order fr..
Employers rely on a job applicants signals : Employers rely on a job applicant's signals:
Moral hazard occurs when a person''s behavior changes : Moral hazard occurs when a person's behavior changes in a way that
By paying a higher-than-market wage : By paying a higher-than-market wage, a firm can avoid the problem of:
International finance assignment country : You will be responsible to track a particular country and its currency. Whatever happens economically in a country ultimately will affect the currency.
Economic incentive to reduce the amount of pollution : When a system of pollution rights is in office, polluters have no economic incentive to reduce the amount of pollution they generate. Over time banks have become more efficient at using bank capital and thus use less of it relative to the assets they..
What does the federal reserve do to stimulate the economy : What does the president and congress do to stimulate the economy? What does the president and congress do to contract the economy? What does the Federal Reserve do to stimulate the economy? What does the Federal Reserve do to contract the economy? Wh..

Reviews

Write a Review

Business Economics Questions & Answers

  What is the firm short-run demand function for input z

What is the firm's short-run demand function for input Z? How much input Z will the firm use when the price is $40? When the price is $80?

  No less than 1000 words excluding the title page

no less than 1000 words excluding the title page bibliography and appendices.question 1. a study into the key

  Although there can be many definitions of socialism

Although there can be many definitions of socialism, which of the following is the least likely to be part of a definition?

  Standard deviations of the two populations

To construct an interval estimate for the difference between the means of two populations when the standard deviations of the two populations are unknown, we must use a t distribution with (let n1 be the size of sample 1 and n2 the size of sample 2) ..

  Two of the numerous great society programs

Choose any two of the numerous Great Society programs that were initiated ruing the 1960s; explain the intent of those two programs. Then, give a substantiated assessment (-.gov sources work well for this) of how successful those programs have been i..

  What happens to hours of work when non-labor income decrease

What happens to hours of work when non-labor income decreases? Does such a non-labor income change generate a substitution effect? Why might we expect welfare programs create work disincentives? What happens to the probability that a particular perso..

  What is the internal rate of return of this investment

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $150,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..

  Should government increase taxes to balance the budget

Assume the government is running a budget deficit. Should government increase taxes to balance the budget. Should the government decrease spending to balance the budget. Elucidate the pros and cons of each action.

  Current account deficit must be reduced

Suppose that the US current account deficit must be reduced. Explain in terms of CA ≈ (S – I) + (T – G) what must be done to reduce the current account deficit. Why will this be difficult? (Hint: It may be helpful to think about the household that ha..

  Illustrate what are the concepts gender planning

Illustrate what are the concepts gender planning, gender budgeting and gender mainstreaming mean.

  What is its profit-maximizing sales quantity and price

Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete. what is its profit-maximizing sales quantity and price? what is the value of MC at profit maximizing sales quantity

  Explain how the estimated salvage is treated using MACRS

A company just purchased a new machine, which has a first cost of $320,000. Salvage is estimated at $75,000. Use both SL and MACRS depreciation over a 7-year recovery period, determine the depreciation charge and the book value for year 5,. Explain h..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd