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.
Answer:
1. increase in accounts receivable Deduct from net income
2. increase in inventory Deduct from net income
3. decrease in prepaid expenses Added to net income
4. Decrease in accounts payable Deduct from net income
5. increase in accrued liabilities Added to net income
6. increase in income taxes payable Added to net income
7. Depreciation expense Added to net income
8. loss on sale of investment Added to net income
9. Gain on disposal of equipment Deduct from net income
10. Amortization expense Added to Net income
Explanation:
Answer: 3, 4, 5.
3. Monthly payments must be made for 30 years.
4. The annual interest rate is 4.8 percent.
5. The homeowner is borrowing $200,000.
Explanation:
D. leniency is based on when somebody rates an employee too high. Strictness error is when somebody was rated very very low.
