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3 years ago

The basic idea behind moral hazard is that ________.

Business

1 answer:

Kobotan [32]3 years ago

3 0

Answer: people tend to take more risks if they do not have to bear the costs of their behavior

Explanation:

Moral hazard is a form of reckless behavior by an individual who doesn't directly bear the cost of the reckless behavior.

Moral hazard takes several forms like the examples of : polluting waters with chemicals, throwing refuse into drainage, mismanagement of public amenities.

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The following information is for employee William Heedy for the week ended March 15.

ioda

Answer:

1. b. $896.00

2. c. $317.20

3. a. $578.80

4. b. $67.20

5. d. $4.80

Explanation:

1. WIlliam's total earnings

40 hours at $16 = $640

8 hours at $32 = $256

Total = $896

2. WIlliam's total deductions

Income Tax $200

United Fund deduction $50

Social security tax (6% * $896) $3.76

Medicare tax (1.5% * $896) $13.44

Total $317.20

3. William's net pay

= Total earnings - Total deductions

= $896 - $317.20

= $578.80

Cash Paid is $578.80

4. Employers FICA based on Williams pay

Social Security and Medicare taxes = 7.5% * $869 = $67.20

5. Employers Federal Unemployment based on Williams pay

Federal unemployment tax = 0.8% * $600 = $4.80

7 0

3 years ago

2. "A company's net income appears directly on the income statement and the owner's equity statement, and it is included indirec

tamaranim1 [39]

Answer:

Yes, I do agree with the statement

Explanation:

The statement which is stating that the company net income as well as the statement of the owner's equity both are included or shown indirectly in the company balance sheet . As balance sheet is that statement which tells the financial position or performance of the company at a specific time period.

Because the net income is the outcome of income statement and directly shown or stated in the income statement whereas owner's equity is the capital of the business which is shown in the balance sheet. Net income is already included in retained earnings which means shown indirectly in the balance sheet.

8 0

2 years ago

Suppose you deposit $2 comma 0002,000 cash into your checking account. by how much will checking deposits in the banking system

Mamont248 [21]

Money is any item that serves as a medium of exchange for goods and services.

3 0

3 years ago

Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, to

andriy [413]

Answer:

Variable cost per unit= $8.4

Explanation:

First, we need to calculate the total cost for each level of machine hours:

Low activity level:

Total cost= 22,000*33.4= $734,800

High activity level:

Total cost= 25,000*30.4= $760,000

Now, we can determine the variable and fixed costs:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (760,000 - 734,800) / (25,000 - 22,000)

Variable cost per unit= $8.4

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 760,000 - (8.4*25,000)

Fixed costs= $550,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 734,800 - (8.4*22,000)

Fixed costs= $550,000

8 0

3 years ago

Atlantic+bank+is+required+to+hold+10%+of+deposits+as+reserves.+if+the+central+bank+increases+the+discount+rate,+how+would+atlant

ohaa [14]

In this case the Atlantic bank will respond by increasing its bank reserves.

Bank reserves is the minimal amount of cash that financial institutions must keep on hand in order to comply with central bank standards . The purpose of the cash reserve regulations is to make sure that every bank has enough cash on hand to handle any significant and unforeseen demand for withdrawals.

The federal discount rate is the interest rate that the Federal Reserve bank charges banks to borrow money from it.

A higher discount rate makes it more expensive for banks to borrow, which reduces the amount of money available and reduces investment activity. In contrast, a decline in the discount rate lowers the cost of borrowing for commercial banks, which increases the amount of credit that is accessible and lending activity across the economy.

To learn more about bank reserves here

brainly.com/question/16196841

#SPJ4

3 0

1 year ago