--%>
Assignment Help - homework help

Moral Hazard evidence

Cameron is performing a research project on whale migration at Pacific Ocean. To assist with this research she hires a Ph.D. from the MIT to make computer software to organize data, paying the software genius $150,000 for his services. The Ph.D. assures Cameron that the software is succeeding nicely and the research group will be much satisfied with the Cameron’s final presentation. When time comes for the Cameron to present the software to her supporters, the computer software is less than what the computer brilliance promised as he has been working on the other projects, and financial support for research melts gone. This is most obviously evidence of: (i) Symmetric information. (ii) Moral hazard. (iii) Adverse selection. (iv) Consumer fraud. (v) Confidence scam.

Find out the right answer from the above options.

   Related Questions in Microeconomics

  • Q : Define abnormal profit Abnormal profit:

    Abnormal profit: It is the gain earned over and above the normal profit.

    		•
  • Q : Exclusivity ratio of ratio while price

    The percentage change within quantity supplied divided through the percentage change within price is an approx measure of a good's: (w) unitary margin. (x) price elasticity of supply. (y) exclusivity ratio. (z) price elasticity of demand.

    Q : Affect of total utility to marginal

    Whenever total utility is at a maximum, then marginal utility is: (1) Rising. (2) Reducing. (3) Zero. (4) Similar as total utility. Can someone help me in getting through this problem.

    		•
  • Q : Practicing joint profit maximization A

    A cartel is: (w) any large multinational corporation like OPEC. (x) a group of oligopolists practicing conscious parallelism of action. (y) a group of firms which practices joint profit maximization. (z) a multinational firm along with government subs

    		•
  • Q : Drive rivals out of business A firm may

    A firm may temporarily lower prices as well as earn negative profits in trying to: (w) drive rivals out of business. (x) find rivals to lower prices. (y) maximize current profit. (z) A rational firm would not do this.

    Q : Labor Unions Strikes-Limiting the

    Can someone please help me in finding out the accurate answer from the following question. The word regular unionized employees apply to non-union workers who get jobs with firms whenever the unionized employees strike for maximum wages and enhanced working conditions

    		•
  • Q : Potential advantage of Proprietorships

    Beth and Anna each own a florist shop. After many years of rivalry, they make a decision to team up and make a partnership. The potential advantage of such a union would be that: (1) They can divide up duties and become more proficient. (2) Their partnership profits n

    		•
  • Q : Bookkeeper problem regarding Moral

    I have a problem in economics on Bookkeeper problem regarding Moral Hazard. Please help me in the following question. When a bookkeeper embezzles $1 million and flees to the Brazil after 22 years on the job, there is a trouble of: (i) Fugitive derelic

    		•
  • Q : Monopolistic exploitation of workers

    When a firm hires workers to a point where VMP > MRP = MFC = W then: (1) There is a bilateral monopoly condition. (2) Wage discrimination is being exercised. (3) There is monopolistic exploitation of the workers. (4) The firm consists of monopsony power.

  • Q : Labor Unions-Public Employees I have a

    I have a problem in economics on Labor Unions-Public Employees. Please help me in the following question. Workers who are now permitted to join unions however who still might not legally strike comprise: (1) Civilian federal employees. (2) Medical pro

    		•