Aurora Township is asking all of its citizens to chip in and donate money to build a new library. Tommy thinks he already pays enough money in taxes, so he chooses not to donate. He knows that even if he doesn't contribute, he'll be able to use the library once it's built. This is an example of: a. adverse selection.
b. the free-rider problem.
c. asymmetric information.
d. tragedy of the commons.
e. moral hazard.

An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 00040,000. if the economy grows at a moderate pace, the investment will result in a profit of $10 comma 00010,000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 00040,000. you contact an economist who believes there is a 2020% probability the economy will remain strong, a 7070% probability the economy will grow at a moderate pace, and a 1010% probability the economy will slip into recession. what is the expected profit from this investment?

Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $360,000; cash paid for rent, $44,000; cash paid to employees for services rendered during the year, $124,000; cash paid for utilities, $54,000.in addition, you determine that customers owed the company $64,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,400 at year-end, and the rent payment was for a two-year period.calculate accrual net income for the year.

Suggested retail price of $13,760, destination charge of $475, equipped with ac, cruise control, and a custom sound system for $800, $235, and $510, respectively. the sticker price for a vehicle with the these features and costs is