Assume That a Particular State Has Decided to Outlaw the Sharing

question 31

Multiple Choice

Assume that a particular state has decided to outlaw the sharing of individuals' credit histories as an illegal invasion of privacy. As a result of this action we would expect the:

• A) cost of borrowing money to rise.
• B) number of loans to unworthy credit risks to rise.
• C) problems of asymmetric information to become more severe.
• D) all of the above
• E) none of the above

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Definitions:

Budget Difference

The variance between the budgeted or planned amount of expense or revenue, and the actual amount incurred or earned.

Static Budget

A budget that remains unchanged over a period of time, regardless of changes in factors like sales volume or revenue.

Manager's Effectiveness

It measures how well a manager achieves the goals and objectives of the business through efficient and effective use of resources.

Variable Manufacturing Costs

Costs that change in proportion to the level of production or sales volume, including costs such as raw materials, direct labor, and certain utilities directly involved in the manufacturing process.