The answer to this question is "Moral Hazard". Hence I<span>f an individual and companies believe they can pursue rewards without facing the risks that should be attached to those pursuits, they are more likely to engage in irresponsible and even unethical behavior. this situation is known as a MORAL HAZARD. This is a belief of a company that they can pursue rewards without facing a problem or any issue.</span>
Answer:
Inventory cost will be $3
So option (b) is correct option
Explanation:
We have given that carrying and setup cost is $600
So carrying and setup cost = $600
And EOQ = 200 units
We have to find the inventory carrying cost per year
We know that inventory carrying cost is given by
inventory carrying cost 
So option (b) will be correct option
Had to look for the options and here is my answer. Given that the bank possesses a liability that is worth $150 billion and its net worth is only $20 billion, then this would mean that the bank must have ASSETS OF $170 BILLION. Hope this answers your question.
Answer: The correct answer is "4. when a third party is injured by an economic activity".
Explanation: A negative externality is when a third party is injured by an economic activity.
Negative externality refers to all kinds of harmful effects on society, generated by production or consumption activities, which are not present in its costs. Negative externalities occur when the action taken in our activities as a company, individual or family causes harmful side effects to third parties. Such effects are not incorporated in all costs. Since the highlighted negative effects are not present in the price of production or of the profit when consuming.
