MICROECONOMICS (CUSTOMIZED CHAPTERS + C
21st Edition
ISBN: 9781307215267
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 4.A, Problem 1ARQ
To determine
Why do people drive faster when they have auto insurance.
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Students have asked these similar questions
2. Suppose the equilibrium price for an average hospital stay in the absence of insurance is
S10,000. At that price, 1000 people are hospitalized each year. Now suppose an insurer offers a
policy to lower the out of pocket price of a stay to S100, and at that price, 1200 pcople are
hospitalized.
How much TOTAL premium revenue must be collected to finance this
arrangement? HINT: you arc trying to brcak even here to get revenucs to match
costs. You are given information that indicates cost. Now you need to consider
revenues to balance that out. Keep in mind this is asking about premium revenue.
There may be other revenue that you are receiving that you should consider when
trying to calculate premium revenue to get to break even.
a.
Health care expenditures coming directly out of consumers' pockets, primarily in the form of deductibles and
copayments, account for what
care spending?
O 18 percent
35 percent
44 percent
O 21 percent
You are considering buying a raffle ticket.
If you win, you will receive $500. If you lose,
you will receive nothing. There is a 1%
chance that you will win. If you are risk
neutral, which of the following prices
would you be willing to pay?
O $50
O $15
O$4
You would not be willing to purchase one at all.
Chapter 4 Solutions
MICROECONOMICS (CUSTOMIZED CHAPTERS + C
Ch. 4.A - Prob. 1ADQCh. 4.A - Prob. 2ADQCh. 4.A - Prob. 3ADQCh. 4.A - Prob. 1ARQCh. 4.A - Prob. 2ARQCh. 4.A - Prob. 3ARQCh. 4.A - Prob. 1APCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQ
Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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