Hopper,Inc ​
-Read the Information About Hopper,Inc

question 48

Multiple Choice

Hopper,Inc.
Use the information from Hopper,Inc.to answer the following question.
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$$\begin{array} { l r r } & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \\\text { Operating revenues } & \$ 1,900,000 & \$ 1,600,000 \\\text { Operating expenses } & 1,400,000 & 1,100,000 \\\text { Income taxes } & 200,000 & 200,000\end{array}$$ ​
-Read the information about Hopper,Inc.Which of the following statements is the best answer regarding the company's profit margin?

• A)The profit margin was 15.8% in 2018.
• B)The profit margin was 15.8% in 2017.
• C)The profit margin was 31.5% in 2018.
• D)The profit margin was 31.5% in 2017.

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Definitions:

Voting System

A method for a group to select one or more options or candidates from a larger pool, often used in elections.

Asymmetric Information

A situation where one party in a transaction has more or better information than the other, leading to an imbalance in power and potentially unfair outcomes.

Hidden Action

A situation in which an agent's actions are not fully observable by the principal, potentially leading to moral hazard.

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the consequences, often due to an asymmetry of information or a misalignment of incentives.