Moral hazard occurs when:
a. individuals do not do what is in their own best interest.
b. an individual knows more about the way things are than other people do
c. an individual has an incentive to violate his or her morals.
d. an individual knows more about his or her actions than other people do.
stephanie offers to pay josh $1,000 a year from now if he will lend her money today. assume that there is no inflation over this period. if josh wants to earn 10% interest, the maximum amount he will lend mary is:
a. $909.09
b. $990.09.
c. $90
d. $826.45

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%

Oimpermeable peaeiremblm: a garment you put on when it's raining. eddepnieent: a sales person. rrgteeaa: to negotiate the price of an article. jcaa: a box where the sales person keeps the money of his/her sales. rbatoa: something inexpensive. zalu: the color of the sky. gfolasdaes (3 words): an object that protects your eyes from the sun.

What are the weak points of economic costs that are part of a free enterprise economy?