Answer:
Yes, moral hazard is an entirely valid concept. It's just the unfortunate reality of human interaction: when we know there is a benefit coming (I'm thinking social security in particular) we are less inclined to pay our own way. Knowing that the poor or lazy won't do this, and that any of your savings may be funneled to them through the government programs, can be difficult and economically frustrating.
401k programs are retirement plans made to self-spend. This is a way of protecting against moral hazard: it awards tax benefits based on how much money the individual raises, not just what the government is willing to give them. This creates incentive, and for many it can provide an antidote to the moral hazard.
Answer:
Customer must buy goods worth 20,000 dollars.
Explanation:
You will receive a 3 percent income on every sale. The cost of the franchise is $600. For you to meet this cost, you must make sales worth $20,000.00.
Three percent can be represented as 0.03. To meet the franchise cost, 0.03 must equal $600.
if 3 percent =$600, then 100% must be (600/3*100)= $20,000.
if we work the reverse, 3 percent of 20,000 = $600. (3/100*20,000)
Answer:
Question 1: The most correct option is option D, which is 0.0133
Question 2: Her data is a random sample from the population of interest.
Explanation: For the first question;
Standard error I the error in the standard deviation. To calculate standard error the formula is used.
S.E = Sd/√n
S.E = standard error
Sd= standard deviation = 0.2
n = number of occurrence = 180
The proportion of the regular users of vitamin among the 180 people is the standard deviation between them.
Using equation above.
S.E = 0.20 ÷ √180 =
0.20 ÷ 13.42 = 0.0149
S.E is 0.0149, when compared to the options, the most correct option is 0.0133, because the question states the answer to be approximately to which of the option.
QUESTION2:
Her research will have much error, because she chooses the car to count. Therefore the research procedure has not satisfied the process that will produce an accurate result. Since she has choosed the street to be her population of interest, all the cars in the street should be counted.
This is not a randomized controlled research, so selection of cars to count is not necessary.
<u>Answer:</u>
b. The appearance of a substitute for DVDs with increase the elasticity coefficient for DVDs.
<u>Explanation:</u>
"Price elasticity of demand" refers to the proportion of a product's percentage change in demand quantity in relation to the percentage change in the good's price. Rates are fixed in a market economy by commodity supply and demand factors.
Markets consist of producers and consumers. Our analysis of buyers' behaviour is focused on demand curves; supply curves reflect sellers' behaviour. The lesser the good's price, the greater the quantity consumers want to buy, as per the “law of demand”.
If a new technology substitutes the DVD, which leads to decrease in their demand. This further leads to the increase in price. Assuming the elasticity is 3.0, a price increase of 10 percent will lower the demand quantity by 30 percent (30 percent/10 percent or 3.0). Thus, the DVD’s elasticity coefficient will increase.
Answer:
Materials used in production 113,120
Explanation:
The credited overehad will be 60% of direct labor
thus: 90,720/0.6 = 151,200 direct labor
Then debit for finished good is the WIP completed during the period so we can use it to solbe for material now:
Beginning WIP 100,800
Materials X
Labor 151,200
Overhead 90,720
Transferred-out <u> (324,800) </u>
Ending WIP 131,040
Materials = Ending WIP + transferred-out - DL - MO
Materials = 113,120