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NeTakaya
3 years ago
6

The following is an example of the moral-hazard problem: Homebuyers do not properly evaluate the risks involved in buying a home

because they are assuming government will bail them out of a bad mortgage as it has done before.
T & F
Business
1 answer:
DENIUS [597]3 years ago
7 0

Answer: True

                                           

Explanation: In simple words, moral hazard refers to the situation when one party do not take proper care while being in a risky event knowing the fact that some other  party will bear the future potential loss if something wrong happens.

Insurance policies is one the major examples of moral hazard as the insured sometimes do not take proper care knowing the loss will be borne by the insurance company.

Hence from the above we can conclude that the given statement depicts moral hazard as the owners are taking too much risk knowing government will bail them out.

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The Engine Division provides diesel engines for the Motor Home Division of a company. The standard unit costs for Engine Divisio
Lisa [10]

Answer:

The best transfer price to avoid transfer price problems is $2,310

Explanation:

Transfer Price = Variable cost + Fixed Fee

Variable Cost = Direct Material + Direct labor + Variable Overhead

                       = 600 + 1,200 + 300

                       = 2,100

Transfer Price = Variable cost + Fixed Fee

                        = 2,100 + 210

                        = $2,310

Therefore, The best transfer price to avoid transfer price problems is $2,310

3 0
3 years ago
A high-school student, mows lawns for families in his neighborhood. the going rate is $12 for each lawn-mowing service. would li
BlackZzzverrR [31]
The event that will happen if he raised his price is If Kyle raises his price he will lose all of his customers. All of the people want to buy product who is low costing because they can save much money and they hate buying things that is so much expensive. The answer to this question is  if Kyle raises his price he will lose all of his customers.
6 0
3 years ago
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar's equipment (10-year life) has a boo
RoseWind [281]

Answer:

B)  574,000

Explanation:

Equipment book of Paar value on december 31/14 of $294,000.-  

Add Kimmels equipment book value on december 31/14 of $190,00

Add original acquisition-date allocation to Kimmel´s equipment of ($400,000 - $272,000) = $128,000

Less Amortization of alloction ($128,000 / 10 years for 3 years) = (38,400)

Eqcuals consolidated equipment of $574,000

8 0
3 years ago
Vivian goes to an auction and sees a rare antique lamp that is an identical match to one she already has. At the proper time she
Verdich [7]

Answer:

Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp.                        

Explanation:

Every auction seems to be either "of-reserve" versus "without-reserve." So the reaction to whether an auction house manages higher bids depends on that form of bidding being carried out. In an offering with reserves, the auction house may reject a higher offer (retain the privilege to reject ...) in which any better bid should be approved in an offering without deposit.

Put differently, the auction house is not obliged to deliver to the top purchaser in a with reserved sale. Essentially, the next bigger raise reflects the minimum price.

6 0
3 years ago
Why is it important for organizations to accurately estimate the demand for a good or​ service? A. To decrease the fixed costs o
Yuki888 [10]

Answer:

B. To plan​ production, marketing, and budgets

Explanation:

A company needs to know accurately the demand for a good or service because it has to determine what kind of customer it is and plan the marketing accordingly. Additionally, that information will be valuable in planning plan its production volume. And afterward, with that information in hands, knowing fixed and varied costs, marketing costs and others, plan the budget accordingly. Pricing, fixed costs, demand slope, and potential sales will be determined by other factors that can include but are not limited to demand estimation.  

4 0
3 years ago
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