he problem prévéhts indiv nvestors from producing enough nformation to eliminate all the asym nformation that leads to he transaction is conducted. Select one: 1. principal-agent; moral hazard
Q: What is Ovako Working Postures Analysis System? Explain.
A: Although analysis as a formal idea is a new creation, it has been used in the study of mathematics a...
Q: Why should regulators give more power to independent directors in family firms?
A: It is very necessary to have at least one decision-maker that can make the decision without the infl...
Q: How useful is the dual labor market perspective?
A: The hypothesis that the American economy, or labour market, is divided into two categories: the Prim...
Q: Policy Perspectives If the price level increases by 0.2 percent for every $100 billion increase in t...
A: For every $100 billion rise in the money supply, the price rise by 0.2%
Q: 1. True or False: explain why your answer is true or false a. We can expect the average cost curve ...
A: The average cost of production is calculated by dividing the total cost (TC) by the total output (Q)...
Q: Question 1.lf the reserve requirement is 100 percent, and banks keep no excess reserves, a new depos...
A: (1) Reserve requirement = 100% = 1 Money multiplier = (1 / Reserve requirement) => Money multipli...
Q: The international terror campaign being waged by Al Qaeda has an underlying economic motive. T or F?
A: Terrorism is defined as the use of violence and fear to achieve an ideological goal in its broadest ...
Q: A family of four has an income of $15,000 today and will earn $24,000 tomorrow. If the family consu...
A: Given: Family of four: Income =$15,000 today Would earn=$24,000 tomorrow.
Q: 11. Consider a competitive market where firms have U-shaped cost curves. Which of the following is t...
A: The MC curve above the AVC is the short-run supply curve of a firm that is ALWAYS upward sloping. It...
Q: O The supply side of the economy, along with Its output, determines the productive capacity O The le...
A: At equilibrium the aggregate demand and aggregate supply are equal and determined the price level at...
Q: How will the aggressive e-commerce plan implemented by Walmart affect operations at it's retail loca...
A: The Retail Industry's Response to Ecommerce Trends With the rise of eCommerce - the world of online ...
Q: A consumer has Cobb-Douglas preferences for beer and pizza. She spends 50% of her budget on New Belg...
A:
Q: Suppose that real GDP is currently $1.24 trillion, potential GDP is $1.33 trillion, the government p...
A: Aggregate demand is a sum of consumption spending, investment, government spending and net exports. ...
Q: Assignment 4 Chapter 7 Starting GDP Value: $100,000 Growth Rate: 5% Time: 5 years Value of GDP after...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any...
Q: 1. Explain why the 1987 Constitution provides provisions on Philippine National Territory. 2. Discus...
A: 1. The Philippines had long been utilised as an Asian trading port, which led to its invasion by the...
Q: What is Liberty Mutual Tables? Briefly explain.
A:
Q: the following cost function TC = a + bQ – cQ 2 + dQ 3 , determine the equations for TFC, TVC, AFC, A...
A: Given: The cost function is: TC = a + bQ − cQ2 + dQ3 To Find: The equations for TFC, TVC, AFC, AVC,...
Q: 16. A movie producer is bringing out a new movie, In order to map out his advertising, he wants to d...
A:
Q: Touché Toiletries Inc. has developed an addition toits Lizardman Cologne line tentatively branded Od...
A: The breakeven point for a product is the point at which the costs of production equal the revenues. ...
Q: (a). The consumer price index over a certain period increased from 120 to 215 and the ages of a work...
A: The answer is given in the attached picture:
Q: A committee of 4 persons is to be appointed from 3 officers of the production department, 4 officers...
A:
Q: Mr. Gonzales wants to know the ending balance after 3 years based on monthly deposits of $500 in his...
A:
Q: (a) Compute the best response functions of each company. Then compute the Nash equilibrium in quanti...
A: The essential Cournot assumption is that each firm determines its own quantity while taking the outp...
Q: 3. The Deatherfuster Cleaning Company receives a report from a consulting firm indicating that the d...
A: Introduction Here demand and cost of a company named as Deatherfuster has given. Demand function for...
Q: Suppose that the world demand and supply elasticities of crude oil are -0.906 and 0.515, respectivel...
A: Solution:- 1) If the demand curve is linear, it is in the form of QD = a + bP Also, we know that Ed...
Q: The demand and supply functions for basic cable TV in the local market are given as: QD = 200,000 –...
A: We have The demand function for basic cable TV: QD=200,000-4,000P .... (1) The supply functio...
Q: B. Combining Fiscal Policy and Exchange-Rate On weekdays, you are a staff member of the Council of E...
A: Fiscal policy means the government plays an important role in controlling inflation or recession in ...
Q: Suppose that the domestic demand and supply for milk in a small open economy are given by QD = 80 – ...
A:
Q: POn the basis of quarterly sales (in $ lakhs) of a certain commodity for the years 2001-2005 the fol...
A:
Q: Your wage increases by 25%. If you want to keep your income constant: Select one: You can only do so...
A: Here, it is given that an individual gets an increase in his wage rate by 25%, but he wants to keep ...
Q: Hello, please help me with the following questions What is the amount of shortage or surplus in th...
A:
Q: You have been asked to prepare a forecast for your company's product, bottled water. Discuss the typ...
A: Forecasting is a technique for predicting the future based on data and trend analysis. Companies wil...
Q: Explain labour demand in short with a diagram
A: In economics, demand is the term that is used to define the need/requirement of a product or a servi...
Q: Consider again the two schemes. Which scheme will the farmers prefer? Consider again the two schemes...
A: A price floor is a minimum price set on goods and services usually determined by the government.
Q: 3) Consider the following demand for domestic goods curve. First, explain why curve DD is steeper th...
A: Domestic demand for goods rises in direct proportion to income. By subtracting the value of imports ...
Q: For the following cost function TC = a + bQ – cQ2 + dQ3, determine the equations for TFC, TVC, AFC, ...
A: Given: TC = a + bQ – cQ2 + dQ3
Q: Suppose we are in an economy with rich households and poor households. Rich and poor households have...
A: Introduction We are in a economy of rich household and poor household. Cpoor = 100 + 35 (Ypoor - Tpo...
Q: As early as in 1974, in his book Who Shall Live?, the well-known US health economist Victor Fuchs po...
A: Health economics is a branch of economics concerned with issues related to efficiency, effectiveness...
Q: Amonopoly faces the demand curve 14 P=12-1.00. 134 where Pis measured in dollars per unit and Qin th...
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost th...
Q: Consider that a company has a total cost function TC = 3Q3+2Q2+6. a.What is the average and margina...
A: Part a: Average Cost = Total Cost/ Quantity Marginal Cost = dTC/dQ TC = 3Q3+2Q2+6 Average Cost = 3Q3...
Q: Causes of unemployment social security benefits for the unemployed reduce incentives to work and imm...
A: Unemployment rate:- Unemployment rate=UnemployedCivilian Labor For...
Q: Complete the following table with the total cost to each firm of reducing its pollution by 2 units. ...
A: In this situation, The government intends to cut the overall amount of pollution produced by three l...
Q: 1) Suppose the production function for widgets is given by: q= KL – 0.8K² – 0.2L². a.) Suppose K=10,...
A: 1) Production Function : q=KL-0.8K2-0.2L2 a) K=10 q=(10)L-0.8(10)2-0.2L2 q=10L-80-0.2L2 Maximizi...
Q: You have 5 years of monthly data on labour market characteristics. Model A: wagej = Bo + B1 educ + B...
A: The correct answer is given in the second step .
Q: The demand equation is . x=-3/4p+10 Compute the elasticity of demand and determine whether the d...
A: Given:Demand=X=-34p+10Now,Slope of demand=∂X∂PSlope of demand=-34
Q: he Chief Executive Officer of Dar Al Herfya (World of Handicrafts) spends her days contacting potent...
A: Zuwaina is an entrepreneur based in Oman who left a corporate desk job to venture out on her own.
Q: How does subjective value make "gains from trade" possible?
A: The subjective value can be considered to be as the significance a singular provides for a decent, t...
Q: ADVERTISING & SALES 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 100 200 300 400 500...
A: Given: A graph is given where there is sales measured on the x axis and advertising is measured on t...
Q: Given the following regression model y = B, + B,x, +u, Where N = 60 Ut P1ut-1 + Et
A: Unit root test is used to find the trend and stationary in the time series data. There are 3 types o...
Q: Lorilei Cruzado just purchased new CAD software for P 5000 now and monthly payments of P 500 for 6 m...
A: To find the present worth, we discount the future values with respect to the interest rate.
Please answer fast
Step by step
Solved in 2 steps
- The evidence is overwhelming that obesity generates demand for more joint replacements.O .A) This is an ex-post moral hazard problem, user fees will solve the problem.O. B) This is an ex-ante moral hazard problem, incentives for obesity reduction, such as subsidies for exercise, may alleviate the problem.O. C) This is cherry-picking by orthopaedic surgeons.O. D) Since this is adverse selection, the total cost of a public insurance system will not be affected.OE) This is an ex-post moral hazard problem, co-insurance will solve the problem.18.5 Suppose there is a 50–50 chance that an individual with log- arithmic utility from wealth and with a current wealth of $20,000 will suffer a loss of $10,000 from a car accident. Insur- ance is competitively provided at actuarially fair rates. Compute the outcome if the individual buys full insurance. Compute the outcome if the individual buys only partial insurance covering half the loss. Show that the outcome in part (a) is preferred. Now suppose that individuals who buy the partial rather than the full insurance policy take more care when driv- ing, reducing the damage from loss from $10,000 to $7,000. What would be the actuarially fair price of the partial policy? Does the individual now prefer the full or the partial policy?Suppose the equilibrium price for good quality used cars is $20,000. And the equilibrium price for poor quality used cars is $10,000. Assume a potential used car buyer has imperfect information as to the condition of any given used car. Assume this potential buyer believes the probability a given used car is good quality is .60 and the probability a given used car is low quality is .40. Assume the seller has perfect information on all cars in inventory. How does the informational imbalance result in adverse selection? a. The expectedprice offered by the buyer encourages the seller to sell a poor quality car. Hence only poor quality cars are sold, which harms sellers. b. The expected price offered by the buyer encourages the seller to sell a good quality car. Hence only good quality cars are sold, which harms buyers. c. The expected price offered by the buyer encourages the seller to sell a good quality car. Hence only good quality cars are sold, which harms sellers. d. The…
- Now consider a different insurance company that does not have the inclination to tailor contracts specifically to individuals. Instead, it will offer a “standard contract” with the premium r =$100 and payout q=$500 to anyone who will purchase it. a. Peter has healthy-state income IH = $500 and sick-state income IS = $0. He has probability of illness p=0.1. Is the standard contract fair and/or full for Peter? If he ends up getting sick, what will his final income be? b. Tim has IH = $500 and IS = $0, but a probability of illness p = 0.2, higher than Peter’s. Is the standard contract fair and/or full for Tim? How does purchasing the standard contract affect Tim’s expected income?c. Jay has IH =$1, 000 and IS =$0, with probability of illness p=0.2. Is the standard contract fair and/or full for Jay?d. Suppose there is a customer named Ronald for whom the standard contract is partial and actuarially unfair in the insurance company’s favor. Give a set of possible values for Ronald’s IH, IS,…Consider the model of competitive insurance. Peter is a risk averse individual with the utility function u(w) = w0.5. His current wealth is $300 and with probability 1/2 he will incur a loss of D = $240, but with probability 1/2 he will incur no loss. Ann has the same utility u(w) = w0.5 and current wealth $300 as Peter, but a different probability of loss: she will incur a loss of D = $240 with probability 0.3, and no loss with probability 0.7. In the separating equilibrium Peter is offered actuarially fair full insurance contract, so his wealth is equal to $180, whether loss happens or not. What amount of insurance (approximately) will Ann be offered an insurance contract with?2 . In a principal agent problem with a risk neutral principal and a risk averse agent, correcting for moral hazard leads to inefficient risk allocation. True False
- Consider an insurance contract with the premium r=$200 and payout q=$800. a.) John has healthy-state income IH = $900 and sick-state income IS = $100. He has probability of illness p = 0.2. Is the contract fair and/or full for John? What is John’s expected income WITHOUT this insurance contract? What is John’s expected income WITH this insurance contract?Suppose in a given state's new insurance marketplace, with community rating and no restrictions on who can buy at the community rate, the risk pool (distribution of expected health costs) is as follows: 30% of eligible enrollees' expected health costs = $1,000 (per year)65% of eligible enrollees' expected health costs = $2,0005% of eligible enrollees' expected health costs = $10,000 Now suppose one insurer, and one insurer only, were allowed to offer any premium it wanted to any potential buyer and to exclude those it did not want to cover? What premium would they likely charge and who would they sell to and who would they exclude? What would happen to the other insurers? Does this help you see why the ACA was written to apply to all insurers?Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate file traits they are seeking in a new employee?
- Which of he following stalements about lhe Time Limil on Certain Defenses provision in an Accident and Heallh policy is CORRECT? A.It specifies the period of time after which an insurance company can deny a claim on he basis of the claim having pre-existed before the effective dale of coverage. B.It specifies the period of lime during which the insured must submit Proof of Loss. C.It prohibits legal actions against the insurance company after a specified period of time. D.It prevents an insurance company from maki any changes to a policy after il is issued.(J) Define moral hazard and give an original example. Do you agree with this concept of moral hazard, explain your answer?• What are the main determinants in health disparities and how can these be modified to improve health status and create health equity in society? In addition to what is in the text, elaborate on these determinants and solutions based on observations that you have made in your own life. Provide references in APA style, please.Suppose there are two types of people, high risk (H) and low risk (L) with utility function U(c) = c0.5 Each has income (=consumption) of $100. The high risk people are 10% of the population and have a 75% chance of getting cancer in which case their income would be zero. The low risk people are the remainder of the population and have a 25% chance of getting cancer and hence zero income. The private insurance industry is perfectly competitive. Insurers are afraid the government will take over the industry and decide to price in a different way. Mindful of the social consequences they will price so that the high risk is fully insured. What condition must be placed on the low-risk for this to be an equilibrium? What is the expected utility of the low-risk given the condition?