Which of the Following Is a Largely Unmined Source of Important

question 13

Multiple Choice

Which of the following is a largely unmined source of important news stories?

• A)exit polls
• B)blog posts
• C)the federal bureaucracy
• D)congressional press secretaries

Understand the difference between product costs and period costs.

Identify the components of product costs: direct materials, direct labor, and factory overhead.

Classify costs properly between product costs and period costs.

Recognize period costs as either selling expenses or administrative expenses.

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Definitions:

Signaling

A solution to the problem of adverse selection that describes an informed party’s effort to communicate her type, risk, or value to less informed parties by her actions. A successful signal is one that bad types won’t mimic. Any successful signal can also be used as a screen.

Anticipate Adverse Selection

The practice of predicting and mitigating the likelihood of selecting undesirable risks due to information asymmetry.

Secure Neighborhood

An area or community designed or protected in a way that minimizes the risk of crime, providing a safe environment for its residents.

Insurance

A financial product sold by insurance companies to protect individuals and businesses against potential future losses in return for a premium.