Scenario 22-1 Esteban and Michaela Own an Apartment Building. They Hire Nico

question 431

Multiple Choice

Scenario 22-1
Esteban and Michaela own an apartment building. They hire Nico to manage the building and deal with tenants' complaints. They also hire Ted to make any necessary repairs to the apartments or the common area and they hire Rex to be the door guard at night.
-Refer to Scenario 22-1. Which of the following is an example of a moral hazard problem?

• A)Ted steals $5 off the counter in a tenant's apartment while he is there to repair a leaky faucet.
• B)Esteban and Michaela do not tell Nico that they are planning to sell the building at the end of the year.
• C)Esteban goes golfing while Michaela reviews the financials from the business.
• D)Rex is paid an efficiency wage to ensure productivity because he is usually not monitored while working.

Compare and understand the accuracy and applications of different types of torque wrenches.

Understand the consequences of stretching a bolt beyond its yield point, including permanent deformation.

Identify the characteristics and applications of various hand tools, including Allen wrenches.

Differentiate between impact sockets and standard sockets in terms of material and design.

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Definitions:

Witness

A person who sees an event, typically a crime or accident, take place.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Obedience to Authority

The act of following orders or directives from an authority figure, sometimes despite personal moral objections or the potential for negative outcomes.

Inflict Harm

The act of causing physical, emotional, or psychological injury or damage to someone.