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ch4aika [34]
3 years ago
6

Consider the following story: When Joe didn't have renter's insurance, he was very careful not to leave candles lit in his apart

ment and locked the door when he left. Now that he has renter's insurance, he typically leaves candles burning all day and forgets to lock the door, because he knows that even if his apartment catches on fire or gets broken into, his insurance will cover it. The economic problem in this story is known as:
A. The free-rider problem
B. Moral hazard
C. Government failure
D. Adverse selection
Business
1 answer:
fiasKO [112]3 years ago
4 0

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 .

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SartainC orporation is planning its annual budget and has the following beginning and ending inventory levels planned for the ye
torisob [31]

Answer: c. 530,000 grams

Explanation:

Finished goods that should be produced in the year;

= Units to be sold + ending inventory - beginning inventory

= 170,000 + 32,000 - 22,000

= 180,000 units of finished goods.

Each unit of finished good requires 3 grams of raw material;

= 180,000 * 3

= 540,000 grams

Raw materials to be purchased;

= Raw materials needed + ending inventory - beginning inventory

= 540,000 + 42,000 - 52,000

= 530,000 grams

7 0
3 years ago
Select the sentence that is completely correct. Group of answer choices Todd is unsure of whether he should except the position
goldenfox [79]

Answer:

The completely correct sentence is:

Todd is unsure of whether he should accept the position or go in to business himself.

Explanation:

The adjective unsure goes with the preposition, 'of' to indicate what the subject is not certain of.  Option 1 with 'except' is completely wrong.  It is not the correct verb form of the word.  Some people, however, omit the preposition, 'of,' but this is not completely correct.

6 0
3 years ago
g Brief Exercise 186 For the items listed below, indicate whether the item is an asset, liability, or stockholders' equity item.
morpeh [17]

Answer:

For the items listed below, indicate whether the item is an asset, liability, income statement or stockholders' equity item

1) Rent expense - Expense (Income statement)

2) Equipment - Asset

3) Account payable - Liability

4) Common stock - Stockholder's equity

5) Insurance Expense - Expense (Income statement)

6) Cash - Asset

7) Account receivable - Asset

8) Retained earnings - Stockholder's equity

9) Service revenue - Income (Income Statement)

10) Notes payable - Liability

Explanation:

Items in the financial statement can be classified as Income, Expense, Asset, Liability or Equity

5 0
4 years ago
Kawasaki Company incurred the following unit costs in manufacturing digital cameras: Direct Materials $14 Indirect Materials (va
Shtirlitz [24]

Answer:

Unitary variable cost= $42

Explanation:

Giving the following information:

Direct Materials $14

Indirect Materials (variable) $4

Direct Labor $8

Indirect Labor (variable) $6

Other Variable Factory Overhead $10

During the period, the company produced and sold 1,000 units.

Under the variable cost method, the product cost is calculated using direct material, direct labor, and variable overhead:

Unitary variable cost= 14 + 8 + (4 + 6 + 10)= $42

0 0
3 years ago
Portia is meeting with her subordinates to determine which workers from her department need training in order to handle producti
svetoff [14.1K]

Answer:

The correct answer is b) operational planning.

Explanation:

Operational planning OP (also known as a work planing) is the method of preparing strategic objectives to achieve the goals. It describes detailly the steps and conditions that will be put into operation during a specific period, usually the fiscal year of a project or business.

8 0
4 years ago
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