Answer:
It is the theory of Market Imperfections
Explanation:
Market imperfections theory is said to be when a trade theory is brought about from international markets where perfect competition does not exist. It occurs when at least, one of the assumptions for perfect competition is violated and this results to what we call an imperfect market.
Moral hazards usually solely impact the buyer. However, since no situations are specified,<u> the answers A and C are both acceptable</u>. In a transaction involving moral hazard, both parties could get hurt, suffer losses.
When one of the parties (whether it is the buyer or the seller) to a contract or agreement can take risks without worrying to face a repercussion, moral hazard may basically exist. In this case, either the buyer or the seller gets hurt in a transaction.
Actually, the phrase "moral hazard" describes a circumstance in which a buyer or a seller lacks the motivation to take precautions against a risk. Why? Simply because they are going to be shielded from any possible losses or fallout.
If you need examples of witnessed moral hazard in the workplace, read here: brainly.com/question/26367615
#SPJ4
Options:
A. $20
B. $200
C. $40
D. $400
Answer:C. $40
Explanation: Opportunity cost is a term used in Economics to describe the value of the next most profitable alternative of this an investor puts his or her resources into,in this case the opportunity cost for Bubba is the percentage of the interest which Bubba earned from the interest.
Opportunity cost for Bubba can be calculated as follows
(2%/100)* $2,000=$40.
Opportunity cost helps economists to ensure that resources are effectively put to use.
<em>Use the PACED decision-making process to make a decision or make a choice. The steps to follow when making a decision can be easily remembered when you use the word PACED:</em>
<em>P - What is the PROBLEM - Why is there a need to make a choice?</em>
<em>A - What are the ALTERNATIVES - What are the possible choices available?</em>
<em>C - Establish the CRITERIA - Why is one choice better than the other?</em>
<em>E - EVALUATE the alternatives - How well does each choice meet the criteria?</em>
<em>D - Make a DECISION - What is the best choice?</em>
<em />
<em />
hope I helped~
Answer:
b. implicit costs
Explanation:
Implicit costs refer to opportunity costs. Opportunity cost refers to the monetary value of the options foregone when an individual opts for another option instead.
In the given case, Susan foregone $25000 per year which she was earlier making, in exchange for starting a new catering business. This depicts loss of opportunities foregone in the form of $25,000 income which she could've continued earning had she not decided to shift to catering business.
Thus, $25,000 denotes an implicit or indirect cost incurred for starting the catering business.