You have just received a report suggesting that a chemical your company uses in its manufacturing process is very dangerous. You have not read the report, but you are generally aware of its contents. You believe that the chemical can be replaced fairly easily but that if word gets out, panic may set in among employees and community members. A reporter asks if you have seen the report, and you say no. Is your behavior right or wrong? Explain.

Q: Which of the following is an example of adverse selection? Group of answer choices A safe driver…

A: Answer Adverse selection means presence incomplete information about the buyers and sellers about…

Q: Ranells is a company that offers one-fifth or more ownership in a cruise ship for a price beginning…

A: The answer is - Option 3. High involvement purchase that involves extended problem solving.

Q: A mobile provider has two types of deals. Currently the provider has 1 million customers, 65% of…

A:

Q: If an individual is involved in an activity where their MB > MC, then they will immediately stop…

A: Marginal benefit means the additional benefit received in selling an extra unit of a product. While…

Q: If people get higher pay for insurance than their premium will this increase or decrease the death…

A: If people get higher pay for insurance than their actual premium, they will be more prone to risk…

Q: Automated Data Processing (ADP) provides computer software and services to a host of companies,…

A: The question involves how a company train its employees and how they are vulnerable even after…

Q: Peter left a skillet of hot oil on the stove, which torched the kitchen cabinets. In insurance, the…

A: Insurance refers to an arrangement by which a company or the state undertakes to provide a guarantee…

Q: Zack is a teenager at a party with his friends who are drinking, and they are insisting that he…

A: Zacks friends are insisting him to drink.Therefore it would be peer pressure.

Q: If a risk-averse individual owns a home worth $100,000, and that individual is willing to pay $1,000…

A: Risk aversion is the human behaviour against taking risk. Every individual wish to earn maximum with…

Q: Ramesh is a shrewd businessman. He buys gold during the off season, when it is cheap and then sells…

A: A speculator who buys large quantities of a commodity in the hopes of profiting from future…

Q: Describe possible ethical issues about privacy as a result of business and government use of big…

A: Marr explains the use of big dàta through multiple studies. Although I want a lot of new ones màde…

Q: what are the advantages and potential problems starting a business amidst the Covid-19 pandemic?

A: The economics as a study is based upon the idea that the idea that the resources which are present…

Q: What is a corporate ethics code? "an exhortation in broad, highly generalized language" an agreement…

A: Business ethics is a type of applied ethics or professional ethics that looks at ethical principles…

Q: Suppose that there is asymmetric information in the market for used cars. Sellers know the quality…

A: Given:The buyers know the probability of getting a lemon car = 30%Price of high quality used car =…

Q: The difference between the value of one action and the value of the best alternative is called moral…

A: False

Q: In the famous court case Stambovsky v. Ackley a prospective homebuyer attempts to back out of a…

A: Imperfect information refers to the situation of asymmetric information.

Q: elect three services ?one high in search attribute,one high in experience attribute,and one high in…

A: Goods are described as items or commodities that can be seen, felt, or touched i.e tangible, and are…

Q: You have a car valued at Gh60, 000. You estimate that there is a 0.1 percent chance that your car…

A: In Economics, Risk neutral preferences are preference that are neither risk averse nor risk lover. A…

Q: Adverse selection is... a. Asking a private pilot about the safety of his plane. b. Purchasing more…

A: Adverse selection is the problem of asymmetric information where one party does not have complete…

Q: In order to cope with high levels of supply uncertainty, a firm would use this strategy to reduce…

A: Supply: It refers to the goods and services supplied in the economy with the help of various…

Q: Improving your communication skills will enhance your career because Select one: a. the higher you…

A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Q: Unethical or ethical: Falsification of facts in order to deceive or confuse?

A: Facts In economics facts is defined as "self-interest of an individual or small group"In other…

Q: Which of the following is an example of moral hazard? Group of answer choices A. Reckless drivers…

A: A moral hazard is a risk that is taken by one party while knowing that his or her act is protected…

Q: Adverse Selection refers to a situation in insurance markets in which individuals change their…

A: Adverse selection and moral hazard are topics of risk management and insurance, It describes a…

Q: Would this be d?   Dan, age 19, may have trouble buying auto insurance at a low price because…

A: Asymmetric information occurs when there is unequal information between two parties. In this…

Q: Adverse selection in insurance business means that those__________ likely to get _________insurance…

A: The main problem with the adverse selection in an insurance company is that the insurance company…

Q: A factory is suspected of hiring illegal immigrants as workers. The authority is deciding whether to…

A: Nash equilibrium is a set of game in which each player believes that he is doing its best, given the…

Q: Due to high accident rates in South Africa during the Festive season, the Road Accident Fund has…

A: The increasing rate of road accidents in South Africa posed a high concern to the government as many…

Q: Whcih of the following could help overcome the problem of adverse selection in the used car market?…

A: The answer is - The government could enact disclosure laws requiring that potential buyers be told…

Q: Suppose Xavier has tickets to the Super Bowl, but is terribly ill with a noncontagious infection.…

A: According to the traditional model of risk behavior, the normal person likes to take risks. The…

Q: You have been assigned to create a new TV game show, and you have an interesting idea that you call,…

A: Given: a player’s final prize amount is: (initial $3) + (their choice of $0, $1, $2, or $3) – 2 x…

Q: Chris left a skillet of hot oil on the stove, which torched the kitchen cabinets. In insurance, the…

A: Here Fire is an example of Peril

Q: High deductible plans in the U.S. reduce adverse selection.

A: Adverse selection occurs when one party has more information than the other in case of a…

Q: Suppose that there is asymmetric information in the market for used cars. Sellers know the quality…

A: Asymmetric information refers to the situation when any of the trading partners has relatively more…

Q: The past records of a factory using quality control methods show that on the average 4 articles…

A:

Q: People tend to view car travel as being safer than airplane travel, but a person is how many times…

A: Odds of dying in a car accident is more than dying from an airplane crash.  Odds of dying in a car…

Q: Provide an example of Moral Hazard from personal observation or experience.

A: Answer to the question is as follows:

Q: which of the strategies is effective in reducing moral hazard?  gatekeeping cost sharing…

A: Basics:- Effective strategies for moral hazard:- Gatekeeping:- This strategy is used by insurance…