In a Given Year in the Production Function of a Typical

question 51

Multiple Choice

In a given year in the production function of a typical college or university,a tenured faculty member would be an example of a(n) ________ input.

• A) fixed
• B) variable
• C) expendable
• D) average
• E) marginal

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Definitions:

Moral Hazard

A situation in economics and finance where one party takes more risks because another party bears the cost of those risks.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or other vehicle-related damages.

Precautions

Actions taken in advance to prevent potential undesirable outcomes or to minimize risks.

Moral Hazard

A situation where one party in a transaction has the opportunity to assume additional risks that negatively affect the other party because they do not bear the full consequences of their actions.