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Suppose that every driver faces a 1% probability of an automobile accident every year. An accident will on average cost each driver $10,000. Suppose there are 2 types of individuals:those w/$60,000 in the bank and those with $5000 in the bank. Assume that individuals w/$5000 in the bank declare bankruptcy if they get in a an accident. In bankruptcy, creditors receive only what individuals have in the bank. 1. What is the actuarially fair price of insurance? 2.What price are individuals w/$5000 in the bank willing to pay for the insurance?3. Will those w/$5000 in the bank voluntarily purchase insurance?
If it decrease the percentage of its output devoted to capital goods, then its rate of growth will tend to increase. Its production-possibilities curve will shift to the left or its rate of growth will tend to decline.
Explain how does this affect the supply of beef. Explain how does it affect the supply of beef worldwide.
As per the mathematical laws that govern the relationship between average total cost and marginal cost, where must these two curves intersect.
Briefly state basic characteristics of pure competition, pure monopoly, monopolistic competition and oligopoly. Under which of se market classifications does each of following most accurately fit.
Illustrate what is the present worth of the planned expenditures at an interst rate of 10% per year.
This change undermines the marketplace for the replacement which is about twice the size of the marketplace for T3MP.
As medicines which with brand names that the man recognise from television commercials sell for more than the unadvertised versions. elucidate in economic terms this perplexing situation to the father.
How macroeconomic equilibrium does an economy achieve. Elucidate what affect does a high level of inflation have on macroeconomic equilibrium.
China's entry into the World Trade Organization (WTO) is likely to create more competition between local also foreign firms also provide China greater access to the marketplace for export.
Show long run effect on In Phillips curve diagram. If expectations are rational and increase in money growth is announced, what happens to In short run.
Which determinant of demand changes in the personal Computer marketplace as more persons become interested
How much interest is in the sixty-fourth payment? How much principal? D. How much interest is in the sixty-eighth payment? How much principal?
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