1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Which of the following describe the product in the marketing mix?
Elza [17]

Answer:

a

Explanation:

3 0
3 years ago
Read 2 more answers
True or false: The role of the government in the free market is limited
MAVERICK [17]

This statement is TRUE

Hope this helps

-AaronWiseIsBae

3 0
3 years ago
Manuel, a supervisor, is known by his managers to be sharp in his decisions and has a good track record of meeting his goals. Ma
kicyunya [14]

Answer: Effective Managers.

Explanation:

An effective manager is a manager that delivers successfully on tasks that he is in charge of and is very good in decision making. Manuel is well known for his ability to meet his objectives set and accurate decision making.

3 0
3 years ago
When you choose to buy a good or service you make your decision in​ ____________ while the people who produce the good or servic
fiasKO [112]

Answer:

your self-interest; their self interest

Explanation:

When you make a decision to buy a good, you make your choice in your self-interest. There could be different reasons to make such choices. This could be because the good could form part of your basic needs or because the prices are quite low.

When people make a decision to produce the good that you are buying, these people are making their decision in their own self-interest. This could also be to make money.

7 0
3 years ago
To prevent loss of work on the computer, it is essential to:
Aneli [31]

Answer:

B. save your document frequently

Explanation:

Saving your documents time to time will prevent loss of work on computer which could be possible due to different reasons like electricity off, some wiring issue  or even hardware/software of computer could be hanged.

So saving frequently can save your work also it is best practice to save in different name so that older history is maintained.

New solution to these problems are using cloud based documents those auto save your work and also maintain history.

4 0
3 years ago
Read 2 more answers
Other questions:
  • A problem with the monetary unit assumption is that A. the dollar is a common medium of exchange. B. the dollar has been stable
    5·1 answer
  • Dana is watching television when a commercial for a brand of bathroom cleaner comes on. She is not very interested in the produc
    12·1 answer
  • In July, Harry's shoes sold 8 pairs of purple crocs for $75 each. On the first day of August, he lowered the price of purple cro
    7·1 answer
  • Suave's new shampoo, HI7, is faltering badly in the market. Suave's marketing personnel are unsure who is responsible for variou
    13·1 answer
  • Duncan Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $100,000 Allowance fo
    15·1 answer
  • Are you kfc? Bc your finger-licking good <33
    7·2 answers
  • Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the followin
    7·1 answer
  • Kali wants to start her own investment firm from scratch, so she's very focused on understanding the possible drawbacks of takin
    13·1 answer
  • A professional sports team that earns more annual revenue than a small-market team is a _____________, fill in the blank,.
    9·1 answer
  • What does the Internet hostname after the period in the URL describe?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!