Multiple-Choice Questions1. 1.Troy, a minor, sells his collection of sports memorabilia to Vern for $250. On his eighteenth birthday. Troy learns thatthe collection may have been worth at least $2,500. Troy1. can disaffirm, because the contract has not been fully performed.2. can disaffirm, if he does so within a reasonable time after attaining majority.3. cannot disaffirm, because he has already attained majority.4. cannot disaffirm, because the contract has been fully performed.2.2.Doug has been drinking heavily. Joe offers to buy Doug's farm for a fair price. Believing the deal is a joke, Dougwrites and signs an agreement to sell and gives it to Joe. Joe believes the deal is serious. The contract is1. enforceable, if the circumstances indicate that Doug understands what he did.2. enforceable, because Joe believes that the transaction is serious.3. unenforceable, because the intoxication permits Doug to avoid the contract.4. unenforceable, because Doug thinks it is a joke.3. 3.Ed is adjudged mentally incompetent. Irwin is appointed to act as Ed's guardian. Irwin signs a contract to sell someof Ed's property to pay for Ed's care. On regaining competency, Ed1. can disaffirm, because he was mentally incompetent.2. can disaffirm, because he is no longer mentally incompetent.3. cannot disaffirm, because Irwin could enter into contracts on his behalf.4. cannot disaffirm, because he may become mentally incompetent again.4.4.Adam, a sixteen-year-old minor, enters into a contract for necessaries, which his parents could provide but do not.Adam disaffirms the contract. Adam's parents1. must pay the reasonable value of the goods.2. must pay more than the reasonable value of the goods.3. can pay less than the reasonable value of the goods.4. do not have to pay anything for the goods.5.5.First Bank loans money to Patty, a sixteen-year-old minor. Patty must repay the loan1. if the loan is made for the express purpose of buying necessaries.2. if First Bank makes sure the money is spent on necessaries.3. if both a and b are true.4. in none of the above circumstances.6. 6.Eve, a fifteen-year-old minor, buys a smartphone app from EZ Spyware. The contract is fully executed. Eve nowwants to disaffirm it. In most states, Eve7.7.1. must return only the app to EZ.2. must return the smartphone with the app to EZ.3. must return just the smartphone to EZ.4. need do none of the above.Neal is adjudged mentally incompetent, and a guardian is appointed. Neal later signs an investment contract withMary. This contract is1. valid.2. bidable.3. void.4. none of the above.8.8.Jeff, a fifteen-year-old minor, contracts with Online, Inc., for Internet access services. Considering that Jeff is a minor,which of the following is true?1. Online can disaffirm the contract.2. Jeff can disaffirm the contract.3. Both a and b are true.4. None of the above are true.

1. 1. Troy, a minor, sells his collection of sports memorabilia to Vern for $250. On his eighteenth birthday, Troy learns that the collection may have been worth at least $2,500. Troy 1. can disaffirm, because the contract has not been fully performed. 2. can disaffirm, if he does so within a reasonable time after attaining majority. 3. cannot disaffirm, because he has already attained majority. 4. cannot disaffirm, because the contract has been fully performed. 2.2.

1. 1. Troy, a minor, sells his collection of sports memorabilia to Vern for $250. On his eighteenth birthday, Troy learns that the collection may have been worth at least $2,500. Troy 1. can disaffirm, because the contract has not been fully performed. 2. can disaffirm, if he does so within a reasonable time after attaining majority. 3. cannot disaffirm, because he has already attained majority. 4. cannot disaffirm, because the contract has been fully performed. 2.2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Two individuals have the same income ($100,000), but different potential healthcare expenses. Person A's probability of having $80,000 in healthcare expenses is 0.5 percent. Person B's probability of having $800 in healthcare expenses is 50 percent. Assume your utility is U = VI where I is your income. Calculate each person's expected income and expected utility. Calculate each person's certainty equivalent. What does value of the certainty equivalent tell you about how much each person would be willing to insure against their loss?
4) You are a financial professional working in a corporate loan department. A company named Mitch Hedberg Inc. (MH) comes to you for a loan. MH has debt from a previous loan (given by a different firm than yours) of 200. Your company analysts say that MH is likely to earn either 180, 240, or 300 this year - each with a probability of 1/3. MH wants you to lend them 100. MH could use this borrowed 100 to do either project X or project Y. Project X has a guaranteed return of 125 if the 100 is put there. Project Y may return either 0 or 210; each has probability of 1/2 and also costs 100 to do. a) Which project, X or Y, has the larger expected value? b) If you lend MH the 100, what will they do with the money? Why? Show your math. c) Should you lend MH the money or not? Show your math. d) Why did I choose the letters "MH" for this problem? What financial economic concept with initials "MH" is important in this problem?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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A call option is "in the money" when the A. market price of the security exceeds the exercise price.B. market price of the security equals the exercise price.C. market price of the security is less than the exercise price.D. premium on the option is less than the exercise price.
7 A principal-agent problem can arise when a) an agent hires a principal to do something on their behalf, and the agent can observe the principal's actions. b) a principal hires an agent to do something on their behalf, but the principal cannot perfectly observe the agent's actions. c) a principal uses an agent to accomplish a task the principal wants credit for completing. d) an insurance agent sells a policy to a buyer who uses it as an incentive to behave badly
1 7. Identify 3 examples of motivated sellers who may be willing to accept a no-money-down offer?
What is the major distinction between an employee and an independent contractor? An independent contractor is required to be licensed, bonded and to carry insurance. Independent contractors are hired using contracts, while employees must be in at-will relationships with employers. The employer has the right to control an employee's behavior and how s/he does the job, but an independent contractor has exclusive (or near exclusive) control over the way the job is done. An independent contractor never owes fiduciary duties to a contracting partner.
4. A taproom owner is trying to determine how to structure his manager's compensation. One option he considers is a flat salary of $70,000 per year. The second option is a base salary of $30,000 plus 15% of the taproom's profit. If the manager puts a lot of effort into her job, the taproom's annual profit will be $500,000 with 75% probability and $100,000 with 25% probability. If the manager exerts only modest effort, the taproom's profit will be $500,000 with 25% probability and $100,000 with 75% probability. The manager's opportunity cost of putting a lot of effort into her job is $50,000, while her opportunity cost of exerting only modest effort is $25,000. a. Draw the game tree for the interaction between the taproom owner and the manager. Assume that the taproom owner moves first. b. What is the equilibrium outcome for this game? What kind of contract should the taproom owner offer? What level of effort will the manager choose? Explain.
2. A group of investors is planning to build an athletic equipment and apparel store in Saskatoon, close to a group of existing big box stores. The group spends $800,000 to buy the required land and to develop the parking lot. After completing these steps they terminate the project when they learn that another athletic store is going to be built close by. What option have the investors exercised? Three years later, the investors still own the land and improvements. How should they value these things if they decide at that time to complete the store as originally planned?
Q.2 - While calculating risk, what are the 3 situations that prevail in the economy? (URGENT)