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2 years ago

Choose the correct statement.

Business

1 answer:

Natasha2012 [34]2 years ago

3 0

Answer:

D.All of the above are correct.

Explanation:

Moral hazard is when people have an incentive to engage in risky behaviours when the person is protected against the consequences of such risky behaviour. Moral hazard can arise in health insurance because once insured, a person has less incentive to adopt a healthy lifestyle.

Adverse selection occurs due to asymmetry of information; when one party in a transaction has more information than the other party. An example of adverse selection In insurance - people who have dangerous jobs are more likely to purchase insurance when compared with people with relatively safer jobs. Adverse selection in health insurance is when healthiest people choose to be uninsured, at least during their younger years and become insured when they are getting older and more sickly.

I hope my answer helps you.

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If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will __________ and

STatiana [176]

If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will fall and its equilibrium quantity will rise.
According to the law of demand indicates that as price increases, consumers are willing and able to purchase less so the quantity demanded will fall and cause the downward sloping demand curve. So when price falls, consumers are willing and able to purchase more.

6 0

3 years ago

Waterway has a standard of 2 hours of labor per unit, at $12 per hour. In producing 3800 units, Waterway used 7350 hours of labo

Vadim26 [7]

Answer:

Direct labor time (efficiency) variance= $3,000 favorable

Explanation:

Giving the following information:

Standard= 2 hours of labor per unit, at $12 per hour.

In producing 3800 units, Waterway used 7350 hours of labor.

<u>To calculate the direct labor quantity variance, we need to use the following formula:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 2*3,800= 7,600 hours

Direct labor time (efficiency) variance= (7,600 - 7,350)*12

Direct labor time (efficiency) variance= $3,000 favorable

7 0

3 years ago

Explain<br> What an<br> organization High- uncertainty is

Korolek [52]

In a country with a high uncertainty avoidance majority of people have an increased level of anxiety about uncertainty and ambiguity

5 0

2 years ago

The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1

Olegator [25]

Answer:

$56.89

Explanation:

The computation of the current price of this preferred stock is shown below:

= Annual dividend ÷ required rate of return

where,

Annual dividend equal to

= Quarterly dividend × number of quarters in a year

= $1.65 × 4 quarters

= $6.6

And, the required rate of return is 11.6%

Now put these values to the above formula

So, the price would equal to

= $6.6 ÷ 11.6%

= $56.89

5 0

3 years ago

Over the years, Hampton Industries' stockholders have provided $40,000,000 of capital when they purchased new issues of stock an

11Alexandr11 [23.1K]

Answer:

Hampton Industries

Hampton's Market value added (MVA) is:

= $12,000,000

Explanation:

a) Data and Calculations:

Stockholders' Equity = $40,000,000

Common stock outstanding = 1,000,000

Market price per share = $52

Market capitalization = $52,000,000 ($52 * 1,000,000)

Market value added (MVA) = $12,000,000 ($52,000,000 - $40,000,000)

b) The market value added (MVA) is the difference between the market capitalization of Hampton's stock and the capital contribution of stockholders.

3 0

2 years ago