Evaluate the Following Expression and Round the Result to the Nearest

question 54

Multiple Choice

Evaluate the following expression and round the result to the nearest hundredth. $\frac { ( 0.7 ) ^ { 2 } - ( 0.3 ) ^ { 2 } } { 0.473 + 0.4 }$

• A) 0.48
• B) 0.61
• C) 0.46
• D) 0.97
• E) 0.31

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Definitions:

Moral-Hazard Problem

The moral-hazard problem arises in situations where one party's willingness to take risks is increased because the negative consequences of those risks will be borne by another party.

Principal-Agent Problem

A dilemma in economics where one party (agent) is supposed to act in the best interest of another (principal) but may have a tendency to act in their own interest.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to the other.

Informational Asymmetry

A situation where one party in a transaction has more or better information compared to another, potentially leading to an imbalance in power or unfair transactions.