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Lesechka [4]
4 years ago
9

When Joe didn't have health insurance, he acted very cautiously, because he knew he would have to pay for any medical bills he i

ncurred. Now that he has health insurance, he engages in more risky activities, such as skydiving and snowboarding, because he knows that if he gets hurt, his health insurance will cover it.
The economic problem in this story is known as:
a. Signaling
b. Moral hazard
c. Adverse selection
d. Screening
Business
1 answer:
pishuonlain [190]4 years ago
7 0

Answer:

The correct option is B

Explanation:

As Joe has health insurance, now he is engaged in the activities which are more risky because he knows that if he gets hurt then the health insurance will cover it. So, this economic problem in the story will be referred to as the moral hazard because it is a hazard when one party can take the risks knowing that the other party will bear the outcome.

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maria [59]

Answer:

The correct answer is regarding the model, is that an individual firms prices are flexible but the level of the price is fixed.

Explanation:

The aggregate expenditure model is the model in which the sum or total of all the expenditures are undertaken in the economy with the factors during the particular time period.

The equation is:

AE = C (Consumption) + I (Investment) + G (Government) + NX (Net Exports)

In this model, it is assumed that the prices of the individual firm are flexible whereas the price level is fixed.

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Which of the following is NOT a reason to complete the Free Application for Federal Student Aid (FAFSA)?
Veseljchak [2.6K]

Answer:

its no obligadp

Explanation:

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Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and re
UNO [17]

Answer:

the present value is $13,588.97

Explanation:

The computation of the present value of the retreading operation is shown below:

As we know that

Present value = Future value ÷  (1 + rate of interest)^time period

= $2,700 ÷ 1.09^1 + $2,700 ÷ 1.09^2 + $2,700 ÷ 1.09^3 + $2,700 ÷ 1.09^4 + $2,700 ÷ 1.09^5 + $2,700 ÷ 1.09^6 + $2,700 ÷ 1.09^7

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Hope this Helps

4 0
3 years ago
An organization in which there are a lot of formal rules, people are treated in animpersonal manner, jobs are carefully divided
andrezito [222]

Answer:

Theory X organization

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