The demand for insurance arises from people who are a

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QUESTION 13The demand for insurance arises from people who are _________.(A) Risk-seeking(B) Risk-neutral(C) Risk-averse(D)None of the above
QUESTION 14Evan is an apple grower. Hailey works as a doctor and is not related to Evan. Which of the following statements is correct?
SOLUTION1D – 2B? – 3A/C? – 4C – 5B? – 6B – 7C? – 8A – 9A – 10A?– 11C – 12C – 13C – 14C
CHAPTER 14QUESTION 1To resolve moral hazard, it is necessary that performance incentives align the marginal benefit of effort of the better-informed party to the marginal benefit of the less-informed party ___________
QUESTION 2A South Korean investor in the North Korean tourist industry set up a floating hotel. What is the advantage of a floating hotel over one built on land?
QUESTION 3Which of the following would affect the distribution of ownership?(A)horizontal integration(B)vertical integration(C)both of the above
QUESTION 4The architecture of an organization includes ______
QUESTION 5For a party subject to moral hazard with respect to multiple responsibilities, strong performance incentives for one responsibility may _______
QUESTION 6The owner of an asset has the rights to ____
QUESTION 7Trucks may be equipped with computers to monitor location and usage. Employee-driven trucks are more likely to have such computers than owner-driven trucks because ______(A)there is a conflict of interest between employer and driver (B)employees might hold up their employer (C)the contract with employees is incomplete

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