Homework Answers
a) This problem is called adverse selection by economist. In Adverse selection , the problem is that those who most likely to buy insurance are also most likely to file claim.
b) It will increase the price of the insurance because they may be high or low risk, so there is risk for high-risk people buying more insurance.
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An article in the Economist observes: “Insurance companies often suspect the only people who buy insurance...
1. A life insurance company must be concerned about the possibility that the people who buy...
1. A life insurance company must be concerned about the possibility that the people who buy life insurance may tend to be less healthy than those who do not. This is an example of adverse selection. True, False, or Uncertain? Support your answer with an explanation (one to two sentences) or a diagram. [2 marks] 2. An insurance company must be concerned about the possibility that someone will buy fire insurance on a building and then set fire to it....
What would be tempting to have people buy a universal life insurance policy? Who would do...
What would be tempting to have people buy a universal life insurance policy? Who would do that? If you withdraw cash from the premium paid, does that decrease the length of the policy
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property...
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property and casualty 56. The problem of occurs when those most likely to get large insurance payoffs are the ones who want to purchase insurance the most. (a) asymmetric information (b) moral hazard (c) adverse selection (d) fraudulent behavior 57. To prevent adverse selection, health and life insurance companies may do all the following except (a) charge higher premiums to people with certain pre- existing...
Traditional economists also assume human beings have complete self-control. But, for instance, people will buy cigarettes...
Traditional economists also assume human beings have complete self-control. But, for instance, people will buy cigarettes by the pack instead of the carton even though the carton saves them money, to keep usage down. They purchase locks for their refrigerators and overpay on taxes to force themselves to save. In other words, we protect ourselves from our worst temptations but pay a price to do so. One way behavioral economists are responding to this is by setting up ways for...
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies....
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. The insurance company knows that, last year, the life expectancy of its policy holders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly samples some of the recently paid policies to see if the mean life expectancy of policy holders has increased. The insurance company will only change their premium...
Please summarize the below article in your own words 500 words no plagiarism please How will...
Please summarize the below article in your own words 500 words no plagiarism please How will ObamaCare Effect The Pharmaceutical Industry This November, President Obama was elected for another four years. This means that the Affordable Health Care act he implemented will be on the fast track toward implementation within the next few years. Although there are people on both sides of the political world that both love and detest the plan, the overall effect on the pharmaceutical industry should...
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies....
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Life expectancy is a statistical measure of average time a person is expected to live, based on a number of demographic factors. Mathematically, life expectancy is the mean number of years of life remaining at a given age, assuming age-specific mortality rates remain at their most recently measured levels. Last year the average life expectancy of all the Life Insurance policyholders in Ontario...
QUESTION 11 Which of the following is TRUE regarding suicide? People who talk about it...
QUESTION 11 Which of the following is TRUE regarding suicide? People who talk about it won’t do it. Only depressed or psychotic people commit suicide. A family history of suicide increases a person’s risk for suicide. women commit suicide more often then men QUESTION 12 Which of the following is FALSE regarding bipolar disorder? It is associated with a high suicide rate. It is a very common disorder. It often includes a rapid flight of ideas, as one experiences...
got these questions wrong, need help with the correct answers, thanks Question 16 2 pts Exhibit...
got these questions wrong, need help with the correct answers,
thanks
Question 16 2 pts Exhibit 4-1 Quantity Quantity Price demanded supplied $1.00 100 1.20 1.40 1.50 1.60 If the price of the good described in Exhibit 4-1 is $1.50, then there will be 70 units bought and sold in this market O a suprlus of 70 units no units bought or sold in this market O a layoff of all workers in this industry O a shortage of 70...
The people who will likely not be able to pay their bills and will end up...
The people who will likely not be able to pay their bills and will end up deep in debt are those who d not manage what properly? Their personal finances Their debit card Their Investments Their money Their checking account • Previous No new data to save, Last checked at 12:07pm Submit Quiz 9 a Does Question 39 Answers to such questions as how much you pay for your car, how much you pay for your house, much your monthly...
1. A life insurance company must be concerned about the possibility that the people who buy life insurance may tend to be less healthy than those who do not. This is an example of adverse selection. True, False, or Uncertain? Support your answer with an explanation (one to two sentences) or a diagram. [2 marks] 2. An insurance company must be concerned about the possibility that someone will buy fire insurance on a building and then set fire to it....
55. The earliest form of insurance was insurance. (a) life (b) health (c) automobile (d) property and casualty 56. The problem of occurs when those most likely to get large insurance payoffs are the ones who want to purchase insurance the most. (a) asymmetric information (b) moral hazard (c) adverse selection (d) fraudulent behavior 57. To prevent adverse selection, health and life insurance companies may do all the following except (a) charge higher premiums to people with certain pre- existing...
got these questions wrong, need help with the correct answers,
thanks
Question 16 2 pts Exhibit 4-1 Quantity Quantity Price demanded supplied $1.00 100 1.20 1.40 1.50 1.60 If the price of the good described in Exhibit 4-1 is $1.50, then there will be 70 units bought and sold in this market O a suprlus of 70 units no units bought or sold in this market O a layoff of all workers in this industry O a shortage of 70...
The people who will likely not be able to pay their bills and will end up deep in debt are those who d not manage what properly? Their personal finances Their debit card Their Investments Their money Their checking account • Previous No new data to save, Last checked at 12:07pm Submit Quiz 9 a Does Question 39 Answers to such questions as how much you pay for your car, how much you pay for your house, much your monthly...
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