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When you buy motor insurance the policy will generally stipulate that the policyholder is responsible for the first part of any claim; for example, you might have to pay the first €250 or €1,000 of any claim and the insurance company would pay the rest ans so the amount you would have to pay forms the deductible.
i) Explain how this arrangement help to deal with the problem of moral hazard?
ii) Explain how this arrangement help to deal with the problem of adverse selection?
Use the Heckscher-Ohlin factor proportions framework with 2-factors, skilled and unskilled labor, to estimate the following arguments.
Suppose which major function of profit is to allocate resources according to consumer preferences
The problem related to Economics, particularly Macroeconomics. It is deals with the indicators of economic development and the associated political risk.
Draw the relavant isoquant map and isocost line if the cost of labor is $4 per work-hour and the cost of glass is $4 per pound and 90 light bulds are to be produced. What is the cost minimizing combination of glass and labor.
Why does representative democracy often tax some people in order to provide benefits to others? When governments become heavily involved in tax-transfer activities, how will this involvement affect economic efficiency?
How well integrated and complementary are the trade and international business resources offered by the Canadian Government, relative to the needs of the private sector?
the following model is a simplified version of the multiple regression model used by biddle and hamermesh 1990 to study
Explain how your policy would help increase aggregate demand. That is, does it increase C, I, G, or X? Explain what would happen to prices (i.e. inflation).
In a series of studies of economic growth conducted at the National Bureau of Economic Research, economists showed that the historic rate of economic growth in GDP could not be accounted for entirely by growth in labor and capital inputs. Consensu..
What are the shortcomings of GDP deflator and CPI as measures of inflation? What are the effects of inaccuracy in measurement?
suppose that an industry has six firms with market shares. market sharesfirm a 25firm b 10firm c 7firm d 12firm e
1. ace and baumont corporations make and sell electrical equipment. both have to decide whether or not to discount. the
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