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Q: What could the remedy be in this case? Could the buyer even have a right to compensation, even if…
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Q: Define adverse selection
A: The answer to the question defining what adverse selection is.
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A:
Q: dural
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Q: Define information asymmetry and explain why it matters for economicdecision making
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Q: Annette Baier argues that for the need for more than justice. Why is justice inadequate for an…
A:
Q: adverse selection
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Q: It was felt that liability insurance would undermine the tort system, which has as its central…
A: Liability insurance:- The word "liability insurance" denotes to such an insurance policy which…
Q: Explain Benefits and Flaws of Payback Screening?
A: The objective of payback screening is to calculate the number of years it takes to recover the…
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A: If occupational safety laws were changed so that firms no longer had to take expensive steps to meet…
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Q: Name two solutions to adverse selection in insurance and explain how they work.
A: Adverse selection occurs when there is asymmetric information between the seller and the buyer.
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- Please construct a table and find the equilibrium for NEGLIGENCE WITH A DEFENSE OF CONTRIBUTORY NEGLIGENCE (WITH EFFICIENT LEGAL STANDARD OF CARE)Suppose a particular population has two kinds of health risks, high and low. Let the expected annual health care costs for the high risk be $10,000, and for the low risk, half that. If there are twice as many low risk as high risk individuals, and if the one insurer’s administrative load is 20%, what would the community rated premium be if everyone is compelled to and able to buy health insurance? Note: administrative load can be construed as the amount that the insurer has in costs to run the plans above and beyond the "health care costs."It was felt that liability insurance would undermine the tort system, which has as its central theorem the concept that the individual responsible for injuring another should be made to pay for that injury. Do you think the existence of liability insurance causes one to be less careful than he or she might otherwise be?
- It was taught that liability insurance would undermine the tort system, which has as its central theorem the concept that the individual responsible for injuring another should be made to pay for that injury. Do you think the existence of liability insurance causes one to be less careful than he or she might otherwise be?Which of the following reports has the primary purpose lo inform an insurance company about a prospect's previous medical insurance history? A.Medical Information Bureau (MIB) B,Attending physician's stalement C.Inspection report D.Producer's reportThere two major types of market asymmetry; these are MORAL HAZARD and ADVERSE SELECTION. Please explain as comprehensively as you can and give/cite example for each of them. Using the theories you learned in Managerial Economics, how will solve or deal with such market asymmetry involving moral hazard and/or adverse selection?
- Annette Baier argues that for the need for more than justice. Why is justice inadequate for an ethics of care? Why, according to baier, shouldn’t a society’s law reflect a “ to each his or her own” view of ethics?Suppose a particular population has two kinds of health risks, high and low. Let the expected annual health care costs for the high risk be $10,000 and for the low risk, half that. If there are twice as many low risk as high risk individuals, and if the one insurer's administrative load is 20%, what would the community rated premium be if everyone is compelled to and able to buy health insurance?NO CHATGPT. In the US, private health insurance is usually purchased by groups rather than individuals. For example, most people are insured through their employer or their spouse’s employer. Which type of distortion does the insurance company need to worry about with individuals purchasing insurance versus groups? Why is group insurance preferable for the employer? Why is this preferable for the individual?
- Suppose the demand for anxiety medication prescriptions is given by P = 300 – Q. Suppose the marginal cost for a prescription of anxiety medicine is constant at $100 per prescription. a. What is the quantity demanded in the absence of any insurance coverage for anxiety medication? b. Now, suppose there is full insurance coverage for anxiety medication (i.e. no cost-sharing at all). What is the new quantity demanded? c. Finally, suppose insurance covers anxiety medication, but there is 20% coinsurance, meaning that individuals must pay 20% of the cost of anxiety medication out of pocket. What is the new quantity demanded? d. Under the insurance structure given in part (c), what is the deadweight loss associated with the presence of insurance coverage?What is the significance when it comes to moral hazard to show it's efficient function of a medical market?Briefly explain what it means for information to be asymmetric. a. What is Moral Hazard? b. Identify and briefly explain three methods that insurance companies could use to off-set the moral hazard associated with their industry. c. What is Adverse Selection?