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oksano4ka [1.4K]
3 years ago
8

Asymmetric information occurs when A. everyone has the same information. B. people engaging in a transaction are uncertain about

future events. C. the information available to the people in a transaction is misleading or incomplete. D. one person in a transaction has more information than the other.
Business
1 answer:
melisa1 [442]3 years ago
8 0

Answer:

Option (D) is correct.

Explanation:

Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.

Asymmetric information will result in two problems are as follows:

(i) Adverse selection

(ii) Moral hazard

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Answer:

If the total of your credits exceeds the amount you owe, your statement shows a credit balance. This is money the card issuer owes you. You can call your card issuer and arrange to have a check sent to you in the amount of the credit balance.

Explanation:

Hope this help!!

6 0
2 years ago
It is pizza night at the murphy home and everyone has an opinion about what they should get as a topping on the pizza. which cho
pishuonlain [190]

This isn't really a business question, but generally vegetables would be a healthier choice for a pizza topping instead of meats and cheeses.

7 0
3 years ago
Read 2 more answers
On January 1, 2012 Morgan Co. purchased a truck that cost $32,000. The truck had an expected useful life of 10 years and a $5,00
Novay_Z [31]

Answer:

Annual depreciation= $2,700

Explanation:

Giving the following information:

Morgan Co. purchased a truck that cost $32,000. The truck had an expected useful life of 10 years and a $5,000 salvage value.

The straight-line depreciation method provides an annual depreciation expense by dividing the book value by the number of useful years.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (32,000 - 5,000)/10= $2,700

8 0
4 years ago
Several types of risk are present in the U.S. economy. For each of the following, identify the type of risk that is present. Exp
Dima020 [189]

Answer and Explanation:

a. This is a fundamental risk case since there is a loss possibility. As the attack is done by the terrorists and the loss is definite in terms

b. It is a property risk as the house is damaged in a fire that resulted into a financial loss

c. It is a personal risk case as the head of the family is totally disabled that directly impact the family which leads to non-fulfillment of the financial liabilities so ultimately its an income loss.

d. It is a case of speculative as the investor purchase 100 shares that resulted in either profit or loss

e. This is a case of fundamental risk as the overflow of the river impacts the property of thousands people

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6 0
3 years ago
Chester's balance sheet has $105,038,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and als
charle [14.2K]

Answer:

The answer is $112,038,000

Explanation:

The total equity will be equity brought forward, the net income(retained earnings) and the newly issued shares.

Book value equals asset minus liability which this formula is the same as equity. So in order words book value is also the same as total equity.

Therefore, the book value is:

$105,038,000 + 3,000,000 + $4,000,000

= $112,038,000

3 0
3 years ago
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