Which of the following is the best example of a moral hazard problem?   Question 25 options:   a)  A borrower uses the proceeds of a business loan to gamble at a Las Vegas casino.   b)  A borrower decides to borrow at a fixed rather than a variable interest rate.   c)  A bank has difficulty in distinguishing between good and bad credit risks.   d)  A borrower makes all of her payments despite a downturn in her business.

Q: Prices of gasoline change rapidly if something interrupts the oil supply. How responsive do you beli...

A: Answer: The price of gasoline changes rapidly if something interrupts the oil supply. But due to the...

Q: If the price level increases in the economy, A) The total spending in the economy will fall. B)The ...

A: When the price level increases in an economy then it implies a fall in the purchasing power. Goods a...

Q: How is a patent obtained? Select one: O a. automatically O b. register a grant application with USPT...

A: Patent is a license which is given by the government, granting a right to someone for a period of ti...

Q: Jan wealth W = 100, has a utility function with respect to wealth of U = .5W^(2) , and faces a gambl...

A: Given: U=0.5W^(2)

Q: MC ATC P. Pa Ps Outputper period Quantity per period Refer to the above figures for a typical firm i...

A: Under long-run perfect competition, the market achieves its equilibrium when the average total cost ...

Q: Other things being constant, when a business issues more stock, the A supply of the stock is greater...

A: A stock is a security that addresses the responsibility for part of a partnership. 

Q: Production function Capital equipment per worker ($ thousands) Which 2 of the following statements a...

A: The given graph shows a production function. The x axis measures the capital equipment per worker an...

Q: If Money Supply is $11,000, real GDP is 31,500, and velocity of money is 2.6, then how much is price...

A: Given supply:Money supply=M=$11,000real GDP=Y=31,500velocity of money=V=2.6

Q: Sally eats at the local burger restaurant. Suddenly the restaurant lowers its prices. A - In respons...

A: Answer:-  A) You can't do it. Because Sally frequents the burger joint, lower burger prices imply th...

Q: Another word for elasticity is

A: What is another word for elasticity.

Q: Consider the following abbreviated financial statements for a proposed investment Years Sales Costs ...

A: Accounting rate of return = [Average annual profit / Initial investment] * 100 Average annual profit...

Q: percent in 1989 to 11.4 percent in 1993 is Multiple Choice corporate restructuring change in employm...

A: Although the US government began recording unemployment in the 1950s, estimates of past unemployment...

Q: 6. There is an increase in Demand in the ROW for USA goods Decrease in the Value of the Dollar. Decr...

A: When the demand for USA goods increases in the ROW then it implies the rest of the world has increas...

Q: An open market sale leads to : prices and the money supply. interest rates the exchange rate O A. fa...

A: Open market operations are purchases and sells of government securities by central banks in order to...

Q: 17. Unemployment of labour means that

A: To find : What is mean by unemployment of labour.

Q: he example of bread and heat is usually given in a closed room in which a number of people live, to ...

A: Purely Public Goods: Purely public goods are those goods that are non-rivalrous in nature and consum...

Q: The wholesale price of milk (px) is $1/gallon, and the wage (pL) is $12/hour. Suppose that farms can...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit thequestion and sp...

Q: Suppose that a typical firm in a monopolistically competitive industry faces a demand curve giver by...

A:

Q: Activity 2 Statistics Reading The most major economic problem of our country today is the reduction ...

A: A positive economic growth rate means the production of goods and services is increasing. A negative...

Q: From the previous graph, you can tell that Teresa is willing to pay s for her 8th slice of cheesecak...

A: The consumer surplus is the difference between the price the consumer is willing to pay and the pric...

Q: The following table contains revenue and cost information for a perfectly competitive firm producing...

A: Total Cost is the sum of variable and fixed cost. Total Revenue is the final amount received by sell...

Q: 8-hour physical work capacity 60% 40% 20% 0% 3 4 5 7 Time Working on Job Figure 2: Maximum physical ...

A: here we explain the MPWC   shown in the given diagram of male and female as follow;

Q: D. Q, Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. Wha...

A:

Q: 1) Lorenz curve show the inequality in income distribution but it does not show a) the debts involv...

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: to classical economists: (a)    Individuals wish to hold money only as a precaution (b)   Individua...

A: According to classical economists.

Q: Questions 1. Howard needs to buy a laptop computer to start online university courses. The price at ...

A: a. In economics, the opportunity cost refers to the value of the next alternative that has to give u...

Q: The labour force participation rate is the Proportion of population that is working

A: To find : What is labor force participation 

Q: There are n > 1 bidders participating in the auction.

A:

Q: The rental market in a town is considering a rent control law. It implemented, this would lower all ...

A: here we calculate the dollar value by the following method as follow;

Q: The following graph illustrates the combination of apples and oranges (point A) that maximizes Yolan...

A: Since Price of Y has doubled,  the vertical intercept will come down to 25 horizontal intercept will...

Q: hich 2 of the following statements are correct? elect one or more: O a. The higher capital per worke...

A: Production function shows how with increases in the input the output increases. It gives the relatio...

Q: 250 225 + 200 175 - 150 125 100 75- 50 25- 25 s0 15 100 125 150 Quantity Refer to Figure 7-9. If the...

A: the initial producer surplus is the area above the supply curve till the price is equal to 50 corres...

Q: International-wide political risk is _______ and global economic exposure is ________ when a firm in...

A: When dealing with the local level or with the international level, in the case of local level the ri...

Q: Russia has raised the policy rate to 20%. Use a theory of exchange rate determination to explain the...

A: Exchange rate - The exchange tells us about the worth of the currency of one country in comparison t...

Q: A group of 10 people have the following annual incomes: $24, 000, $18, 000, $50, 000, $100, 000, $12...

A: Solution: Writing the given incomes in increasing order. First quintile 10000 12000 Second quin...

Q: Investment 200, Net Exports 50, Total Tax Reven 250, Income tax rate 10%. How much income should bee...

A: A budget is an estimation of revenue and expenses over a specified future period of time and is util...

Q: 16. The elasticity of labor supply implied by the following table taken from Ashenfelter et al. (Eco...

A: Elasticity of labour supply: Elasticity of labour supply is measured by divinding the percentage cha...

Q: .In a typical demand schedule, quantity demanded

A: To find : What quantity scheduled. 

Q: In the absence of regulation, banks would probably hold   Question 20 options:   a)  too little c...

A: The capital of a bank constitutes shareholder's money, investor's money, and the part of the profit ...

Q: A debit card differs from a credit card in that   Question 16 options:   a)  a credit card is a l...

A: A credit card is a card that allows the cardholder to borrow money from a financial organisation, us...

Q: Assuming that your firm is considering investment in a new project with the cash flows shown below. ...

A: Time CF Discount factor @10% Present value 0 - 3500 0.909 - 3500 1 1200 0.826 991.2 2 1350 0....

Q: How are you going to maximize a profit if the price is given as 3 – 25D?  A. Differentiate the price...

A: profit is the difference between total revenue and total cost.  Profit = Total revenue - Total cost....

Q: Prices of gasoline change rapidly if something interrupts the oil supply. How responsive do you beli...

A: Answer -

Q: 11: Given the demand and supply system: Pb = 53 - 5 Qb & Pv = 3 + 2 Qv With a specific tax of T^ = 4...

A: Given; Demand function; Pb=53-5Qb Supply function; Pv=3+2Qv At equilibrium:- 53-5Q=3+2Q5Q+2Q=53-37Q=...

Q: firms face downward-sloping demand curves in

A: There are two types of market, i.e., perfectly competitive and imperfectly competitive market.  Mono...

Q: Monopoly, Oligopoly microanalysis about vouch insurance?

A: To find : Monopoly on vouch insurance company. 

Q: On the following graph, use the black curve (plus symbols) to illustrate the deadweight loss in thes...

A: Deadweight Loss: A deadweight loss is a cost to society created by market inefficiency, which occurs...

Q: The demand and supply functions of two related goods are given by Qd1 = 300 – 50P1+ 20P2 Qs1 = -200 ...

A: Answer: Given, Qd1=300-50P1+20P2Qs1=-200+40P1Qd2=700+40P1-40P2Qs2=-100+20P2 Equilibrium in the marke...

Q: What is the GDP deflator?  How does the GDP deflator relate to real GDP?  Real adjusts for inflation...

A: The GDP deflator is a tool used for understanding the movement of price from the base year to the cu...

Q: Labor productivity on the ABC assembly line was 22 units per hour in 2008. In 2009, labor productivi...

A: Labor Productivity is the output per labor. Labor Productivity in 2008 : 22 units. Labor Productivit...

Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.