people. Intertemporal Budget Constraint below. The indifference curves A and B represent two different -BC A. Who is more patient? CIRCLE ONE PERSON A OF B. Which person will be better off with a decrease in the interest rate? CIRCLE ONE PERSON A of PERSON B PERSON B
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- 2. “A risk-averse individual will always full insure, meaning that uncertainty is irrelevant.” Discuss this comment using relevant model(s) studied in the unit.Isabella understands that if she were to play golf, she would be able to spend time outdoors (where she likes to be) with people she enjoys. However, because she has taken golf lessons 10+ times and still cannot hit the golf ball, she does not believe that she can actually play golf. Based on what you know about Expectancy Theory, will she join her friends to play golf this summer? Group of answer choices Yes. Instrumentality and Valence are high. No. Valence is too high. No. Expectancy is low. Yes. Instrumentality is high.c. What does the term “counterfactual” refer to in CBA, and why is it an important consideration? d. Does CBA guarantee allocative efficiency? Why/why not? CBA is cost benefit analysis
- What are pure specific factors model and mixed pecific factors model? How does the two differ?According to Grossman model, what would happen to the demand for health stock if wages go down? A) Would MEI shift to the right/left/stay the same? B) would MC curve shift up/down/stay the samer C) would optimal level of heath stock go up/down/stay the same?Suppose a consumer has S100 today and he tells you he is willing to wait X amount of time for another $50. The same consumer also tells you that in the future if he has $10 he ts willng to wait Y amount of time for another $50.If Y is greater than X, does the individual exhibit hyperbolic discounting, exponential discounting, or is there not enough information to determine? Briely explain your answer.
- Can you answer these three parts please? I am super confused. Thank you :) Part A. Austin pays $10,500 per year to an insurance company in return for its promise to pay part of his family's medical bills. Austin must pay the first $1,000 on his own before the insurance kicks in. The $1,000 is Austin's: a. risk b. deductible c. premium d. expected utility Part B: Suppose Austin earns $100,000 if he is healthy, and _____ if he falls ill. Suppose further that he has a __% chance of falling ill. If Austin were to purchase full insurance, the payout would be equal to $20,000. The actuarially fair premium for this payout would be equal to $400. a. $80,000; 2% b. $120,000; 2% c. $80,000; 0.4% d. $100,000; 20% e. $120,000; 0.4% Part c: suppose Austin (who is now your employer) offers a new health insurance benefit that covers orthodontics (things like braces, invisaline) for employees and their family members. Suppose further that you are aware…Different reimbursement approaches/strategies involve more or less risk for health care providers and for health insurance companies. Which approaches/strategies involve the most risk for health are providers? Which approaches/strategies involve the most risk for health insurance companies? Explain “why” in each of your answers, and make sure you define all relevant terms and concepts. In what sense is health care an investment? In whatsense is it pure consumption?
- Fabian is Canadian. His grandfather recently required chemotherapy, but was frustrated by the long delay in receiving care. Fabian recently found out that his cat will also require chemotherapy. Would Fabian expect there to be a similar delay? Explain.When Shalini is sick, she values wealth according to the utility function US(w) = ln (w). When she is healthy, she values wealth according to UH(w) = 1.1 ln (w). Shalini allocates wealth of $1,000 for each week and has a 5% chance of getting sick. a) Would Shalini be willing to spend $30 of her of her $1,000 wealth in order to guarantee avoiding getting sick, if it were possible for her to do so? (b) Would Shalini be willing to spend $30 of her of her $1,000 wealth in order to buy an (actuarially fair) insurance policy under which she receives $600 in indemnity if she gets sick? (c) How do you explain your answers to parts a and b above? How do the answers compare and how you can intuitively explain them in this context?Q) In a standard economic analysis, setting a higher copayment rate per day of hospital care 1) Has the beneficial effect of discouraging unnecessarily long stays 2) Has the harmful effect of subjecting the consumer to more financial risk 3) Shifts some of the costs of care from the insurance premium to out-of-pocket payments 4) All of the above Choose correct option and short explanation