If your average earnings were $30,000 per year and you receive $20,000 per year in disability benefits after an accident, what is the replacement rate (rate of partial insurance)? Group of answer choices 16.67% 22.22% 33.33% 66.67%

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter20: The Problem Of Adverse Selection Moral Hazard
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If your average earnings were $30,000 per year and you receive $20,000 per year in disability benefits after an accident, what is the replacement rate (rate of partial insurance)?

Group of answer choices

16.67%

22.22%

33.33%

66.67%

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