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Mortal hazard problem and adverse selection problem
Place an 'M' beside the items in the following list that describe a mortal hazard problem and an 'A' beside those that describe an adverse selection problem:
a. A person with a terminally illness buys several life insurance policies through the email.b. A person drives carelessly because he or she has automobile insurance.c. A person who intends to "torch" his warehouse takes out large fire insurance policy.d. A professional athlete who has a guaranteed contract fails to stay in shape during the off-season.e. A woman who anticipates having a large family takes a job with a firm that offers exceptional child care benefits.
Assume that two individuals have the similar tastes and the same initial endowments. What can you say about the efficiency of the allocation.
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
Among which of the subsiquent policies would decrease demand-pull inflation.
In providing assistance to the states like Washington has in the past attached strings which have dictated state legislation.
The rates of server for performance monitoring were officially defined for 2008 also represents a reduction
Write down his budget constraint and a utility function that captures his preferences. Draw his budget constraint and three of his indifference curves.
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
This exercise is an illness which has caused three capable observable things to happen. What are they?
Suppose the demand for ABC product has an elasticity coefficient. Explain how many it will sell per month if the price
Life insurance companies require applicants to submit to a physical examination as proof of insurability prior to issuing standard life insurance policies.
What is value added in every sector also what is total output for the economy.
Illustrate what would be a monetary policy prescription to reduce or eliminate deflation.
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