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riadik2000 [5.3K]
3 years ago
10

Which of the following is a true​ statement? A. Adverse selection occurs after a transaction has taken place in insurance market

s. B. The FDIC has reduced the problem of moral hazard but not the problem of adverse selection. C. The FDIC has reduced the number of depositors who have lost​ savings, but in doing​ so, has inadvertently encouraged banks to make riskier loans. D. Moral hazard is a problem that occurs before a transaction takes place when asymmetric information is a problem.
Business
1 answer:
Salsk061 [2.6K]3 years ago
8 0

Answer:

C

Explanation:

FDIC gives insurance to depositors. it promises to pay  back a certain amount of the deposits of a banks customers in the case where a bank fails. As a result of this insurance banks have a greater incentive to take on more risky projects because they know that their customers would be protected even the project goes sour and the bank fails.

Due to the services of the FDIC, less depositors have lost money when a bank fails because of the insurance services they provide to depositors.

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Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: If $25,
GaryK [48]

Answer:

The missing part of the question is found below:

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:

                                Total       Hiking        Fashion

Sales revenue       $480,000 $340,000 $140,000

Variable expenses 355,000 235,000 120,000

Contribution margin 125,000 105,000 20,000

Fixed expenses         76,000 38,000 38,000

Operating income (loss) $49,000 $67,000 $(18,000)

Answer

By discontinuing fashion line of business operating income would increase by $5,000

Explanation:

The impact of eliminating Fashion line is evident in the revised Income statement below:

                                                                 Hiking

Sales revenue                                         $340,000

Variable expenses                                  ($235,000)

Contribution margin                                105,000

Fixed expenses($76,000-$25,000)     ($51,000)

Operating income                                    $54,000

By discontinuing the fashion line of business,the operating income would increase by $5,000 ($54,000-$49,000) from $49,000 when operating the two lines of business to $54,000 when fashion is closed up.

The most appropriate action is to concentrate on the hiking line which might mean that Boots plus has a competitive edge in the Hiking business sector.

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The most appropriate job for Janelle is in clerical work. The answer is B.

Clerical work requires competent systematic skills. Since Janelle is very comfortable in arranging or organizing files, she is very compatible with the job. Moreover, clerical work requires focus and does not really require interaction with workers. As long as you are able to deliver the outputs, that is already considered as efficient.

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Answer:

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4. a firm that faces a downward sloping demand curve.

<u>Perfect Competition:</u>

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3 years ago
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A(n) ________ is a tool management uses to assess the potential of a firm's business portfolio. It helps management decide how t
frozen [14]

Answer:

3. portfolio analysis

Explanation:

Some example is portfolio analysis are:

Unilever has a portfolio of supplying tea and ice cream.

Gillette provides shaving products and batteries.

Protfolio analysis is the process by which the portfolio or products of a business are reviewed. It is done to analyse risk and returns. When portfolio analysis is done frequently it helps the business make changes in portfolio allocation based on changing market needs.

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