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Irina-Kira [14]
3 years ago
12

Martha used to pay for her expenses with her own hard-earned money. She always tried to spend as little as she could. However, s

he started spending more when she received a scholarship. This behavior is an example of ________. a pecuniary externality the free-rider problem the paradox of thrift moral hazard
Business
1 answer:
Novosadov [1.4K]3 years ago
5 0

Answer:

moral hazard

Explanation:

Based on this scenario it can be said that Martha's behavior towards her spending habits is an example of moral hazard. This refers to when an individual decides to spend more or expose themselves to more risk because someone else is bearing the costs of those risks. Which is what the scholarship fund represents to Martha, someone is bearing the costs of Martha wasting that money, therefore she carelessly spends more when she received the scholarship.

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When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest paym
Sladkaya [172]

Question Completion:

A. More than the effective interest.

B. Less than the effective interest.

C. Equal to the effective interest.

D. More than if the bonds had been sold at a premium

Answer:

When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:

B. Less than the effective interest.

Explanation:

This cash payment is the product of the bond's face value multiplied by the coupon rate.  The interest expense is increased by the amortized portion of the discount for the particular period.  This means that the interest expense will be higher than the cash payment for interest because of the discount granted at issuance.  And the interest expense is the product of the outstanding debt multiplied by the effective interest rate.

8 0
3 years ago
Suppose the working-age population of a fictional economy falls into the following categories:
aniked [119]

Answer:

The right solution is:

(a) 120

(b) 20%

Explanation:

Given that,

Full time employed,

= 75

Part time employed,

= 25

Total unemployed,

= 20

(a)

The total employed will be:

= Full \ time + Part \ time

= 75+25

= 100

Now,

Labor force will be:

= Total \ employed+Total \ unemployed

= 100+20

= 120

(b)

The unemployment rate will be:

= \frac{Total \ unemployment}{Labor \ force}\times 100

= \frac{20}{100}\times  100

= 0.2\times 100

= 20 (%)

6 0
3 years ago
Bob reads a circular from the Department of Human Health and Safety. It recommends a lower intake of salt as a measure to preven
STALIN [3.7K]

Answer:

Selective distortion

Explanation:

Selective distortion is the phenomenon where people interprete information based on their previous beliefs. This occurrence makes it difficult for such people to be influenced to make a purchase through advertisements.

This challenge to marketing also applies to selective attention and selective retention.

In this instance Bob reads a circular from the Department of Human Health and Safety recommending lower salt intake to prevent health problems. Because his grandmother still adds salt and remains healthy, Bob discards this information as being untrue.

4 0
3 years ago
Smith plumbing supply has completed a swot analysis. the company is in a good position financially and has decided to use some o
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<span>This is a growth strategy. The company, since it is in a good financial position, does not need to take a stability track to maintain its standing. Taking advantage of the opportunities they have found will give Smith Plumbing the ability to grow and become a more profitable business.</span>
5 0
3 years ago
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A good system of internal control for cash provides adequate procedures for protecting both cash receipts and cash disbursements
kirill [66]

Answer:

The correct answe is A basic guideline for safeguarding cash is to separate the duties of those who have custody of cash from those who keep cash records.                  

Explanation:

A separate management of the registry and custody functions will reduce fraud, since being two tasks where cash is handled, it is likely that if the same person performs both functions, they will end up diverting money for their convenience, which directly affects in the organization and would waste important resources that can be executed in other important areas.

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3 years ago
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