Answer: Moral hazard
Explanation: Moral hazard can be defined as a situation when an individual increases his risk even when he has the option to no to, as he knows that he is insured and the potential loss will be bore by someone else.
In the given case Joe starting taking risk of fire as he knew that if there comes any loss, it will be bore by the insurance company. Hence the economic problem in this theory is Moral hazard .
COBRA- Consolidated Omnibus Budget Reconciliation Act, is the name of the federal law that guarantees employees who have lost their jobs continuing access to health insurance.
<h3>What is Federal COBRA?</h3>
When your employment terminates or your hours are reduced, federal COBRA is a law that enables you to preserve your group health coverage. All insured employees, their spouses, ex-spouses, and dependent children must be provided with continuous coverage under federal COBRA. Employers and group health plans with 20 or more members are subject to the federal COBRA.
<h3>How does COBRA work?</h3>
Under certain conditions, including voluntary or involuntary job loss, a reduction in hours worked, a change in employment, death, divorce, and other life events, the COBRA allows employees and their families who lose their health benefits to choose to continue receiving group health benefits from their group health plan for a finite amount of time. The full price for coverage up to 102% of the plan's cost may be demanded of qualified persons.
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Foward Inc uses a <u>Functional structure</u> to organize its sales force
Explanation:
- It is one of the Most common type of organizational structure.
- In this type of structure the employees are given roles/task as per their specialization.
For example:A employee who specializes in Human Resource management will work as a Human Resource Manager.
Similarly a employee who specializes in Finance can play the role of a Mutual Fund Advisor ,Wealth Manager.
Answer:
C. There are no costs of switching to competitor's products.
Explanation:
Demand is buyers ability & willingness to buy at a price, time. Elasticity of Demand is buyers' demand responsiveness to price change.
Elastic demand means demand changes more with regards to price change. Inelastic demand means demand changes less with regards to price change.
In case of : buyers perceiving less substitute competing goods, item representing a small fraction of consumer's budget, buyers having less time to adjust to price change - Demand responds less to price change i.e is Inelastic.
If there are no costs to switching to substitute competitors' goods, shifting to other substitute goods is more convenient. This easier goods substitution makes good's demand more responsive to price change i.e Demand is Elastic.
