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
Alex777 [14]
2 years ago
7

Owners of defective used cars have more information about the condition of their vehicles than potential buyers of those used ca

rs. This is an example of: A. the moral hazard problem. B. a spillover cost. C. a positive externality. D. asymmetric information.
Business
1 answer:
lakkis [162]2 years ago
4 0

Answer:

D. asymmetric information.

Explanation:

Owners of defective used cars have more information about the condition of their vehicles than potential buyers of those used cars. This is an example of an asymmetric information.

An asymmetric information can be defined as a situation wherein there's an imperfect flow of information or knowledge between the buyer and the seller of a product; sellers having more knowledge than the buyer of a product.

You might be interested in
Simpson Sign Company based in Frostbite Falls, Minnesota has a 6-month C$100,000 contract to complete sign work in Winnipeg, Man
seraphim [82]

Answer:

A) $102,000

Explanation:

The computation of the amount used today for preparing the operating budget is shown below:

= Contract value × forward rate

= $100,000 × $1.02

= $102,000

For computing this, we consider the forward rate and the same is multiplied with the contract value so that the correct amount can come.

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
Currently, the yield curve is ascending. A customer believes that the Federal Reserve will start to tighten credit by raising sh
sleet_krkn [62]

Answer:

Short-selling long-term bonds and taking long position on short-term assets

Explanation:

When the yield curve ascends, the long-term bond's price will go down. Hence, do short-sell the long-term bonds. On the other hand, short-term asset's price will be depreciated because Fed tightens credit and raise short-term rate, which is the chance to purchase and make profits from capital gains.

3 0
3 years ago
To respond to the structure of its industry, an organization should choose a __________.
Usimov [2.4K]
To respond to the structure of its industry, an organization should choose a __________.

Competitive strategy
8 0
2 years ago
The United States and the European Union are groups of semi-independent states that have come together under an agreement whereb
goldfiish [28.3K]

Answer:

C. Each state or country can adopt large-scale production techniques that allow lower per-unit costs of production.

Explanation:

Typically explained, Economies of scale (EOS) are the advantages or benefits a firm achieves due to increase in production or operation which in turn leads to decrease in per unit costs.

Here in this question, it is evident that the only way economies of scale could be achieved is by increasing the large scale production techniques that leads to lower per-unit costs of production for the firms.

Hope this clear things up.

Thank you.

6 0
3 years ago
Read 2 more answers
Individuals cannot purchase health insurance policies directly from commercial insurance companies.
kozerog [31]

Answer:

True

Explanation:

Commercial insurance companies have sales department, in which insurance sales agents are responsible to sell health insurance policies to the individuals.

4 0
2 years ago
Other questions:
  • The sales tax rate is 7.4 find the tax paid for a pair of shoes with of list price of 93
    5·1 answer
  • Each piece of stock that you own in a company is called a what?
    13·1 answer
  • Last year ABC Media had $425 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In mil
    5·1 answer
  • Asset retirement obligations:
    7·1 answer
  • The 2,000 employees working in Toyota's factory in France are an example of the ______ effect of FDI on employment, while the 2,
    12·1 answer
  • Harry recently raised his employees' wages, which has increased production costs. Which factor did the salary hike affect?
    15·2 answers
  • Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Th
    12·1 answer
  • How much money does a therapyst make an hour/ and how much would they make in a year
    7·2 answers
  • Who are the stakeholders who should be involved in the system and acquisition process?
    11·1 answer
  • from 7 pm to midnight only percent of the personal and commercial vehicles on the streets and highways are being driven for econ
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!