Ask Question
BusinessBusiness
27 July, 14:52

What is the following scenario an example of? Tom often calls 911 from the drive-through lane of a fast food restaurant if his order comes out wrong. A. public choice theory B. utility theory C. moral hazard D. law of diminishing marginal utility

+2
Answers (1)
  1. 27 July, 15:20
    0
    The correct answer is C. moral hazard.

    Explanation:

    Moral hazard corresponds to opportunistic behavior in which one of the parties seeks their own benefit at the cost of the other being unable to observe or be informed of their conduct.

    Moral hazard appears in the markets with asymmetric information. One party has private information about their conduct while others cannot obtain this information.

    Given this asymmetry, individuals take greater risks, make less effort or take advantage of certain circumstances since they know that the cost of their actions will fall on other people.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is the following scenario an example of? Tom often calls 911 from the drive-through lane of a fast food restaurant if his order comes ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Tara has started a new job and has been assigned to work on a team. She is anxious about getting along with her new team members. What is one piece of advice you could give to Tara about working A. Keep your ideas to yourself. B. Avoid gossip. C.
Answers (1)
A method of accounting for uncollectible receivables in which the company estimates bad debts expense instead of waiting to see from which customers the company will not be able to collect is known as the allowance method.
Answers (1)
How does Gross Domestic Product (GPD) differ from gross national product
Answers (1)
Denise, a solvent individual but a recovering alcoholic, embezzled $5,000 from her employer. In the same year that she embezzled the funds, her employer discovered the theft.
Answers (1)
When the cost of an item can be traced to objective evidence of a transaction, such as a sales receipt, canceled check, and bank statement, the information has the quality of:
Answers (1)
New Questions in Business
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar.
Answers (1)
For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio is less than the weighted average of the betas of the individual stocks. b.
Answers (1)
What publication can give you an idea of how administrative jobs are going to change in the future? A: Office Pro B: Occupational Outlook Handbook C: From 9 to 5 D: The Executary
Answers (1)
At a four-way stop, if two cars arrive at the intersection at the same time: A) the larger car has the right of way B) the vehicle on the right yields to the vehicle on the left C) the smaller car has the right of way D) the vehicle on the left
Answers (1)
Home » Business » What is the following scenario an example of? Tom often calls 911 from the drive-through lane of a fast food restaurant if his order comes out wrong. A. public choice theory B. utility theory C. moral hazard D. law of diminishing marginal utility
Sign Up Forgot Password?