User Account

All Pages

California earthquake authority

Assignment Help Macroeconomics
Reference no: EM131186051

Managerial Economics:

The California Earthquake Authority at one time used outside claim adjusters.  The claim adjusters received 9% of each approved claim.  Why did this cause a principal-agent problem?

Which of these is the correct answer?

  1. Claim adjusters were not hired directly, so their goals were different that the Earthquake Authority's goals.
  2. Claim adjusters had incentive to approve any claim, while the earthquake authority needed them to reject suspect claims.

Reference no: EM131186051

Questions Cloud

Examples of simple linear regressions : Provide two examples of simple linear regressions we could use in (1) economics and (2) finance. Carefully define the variables you would use as the dependent variable (y) and the explanatory variable (x). Now discuss different types of hypothesis..
Contrast the economic entrepreneurship theory : Ccompare and contrast the economic entrepreneurship theory and the sociological entrepreneurship theory in relation to Zimbabwe
Calculate the electric field intensity at the center : The shaft is 10m in diameter. Calculate the electric field intensity at the center of the shaft (magnitude and direction). Assume ground is conducting, and the air in the shaft has permittivity of free space.
Determining a nation development prospects : What are institutional arrangements and why might they have a crucial role to play in determining a nation's development prospects? Illustrate your answer by referring to the experience of one country.?
California earthquake authority : Managerial Economics: The California Earthquake Authority at one time used outside claim adjusters.  The claim adjusters received 9% of each approved claim.  Why did this cause a principal-agent problem?
Determine the best structure for the apple orange company : Based on your knowledge, experiences, and common sense, determine the best structure for the Apple-Orange Company.
Factors that shift the lras curve left and right : What are the factors that shift the LRAS curve left and right, and what causes movement along the curve?
Profit maximizing rate of output for the firm : The price of jeans in a perfectly competitive market is $17. Costs are as follows: Quantity 0 1 2 3 4 5 6 7 8 9 10Total Cost 10 17 26 37 50 65 82 101 122 ..
Calculate the electric field intensity at the center : Point charge in a conducting shell. A point charge +q is located inside a very thin conducting spherical shell halfway between the center and the shell shown in Figure 5.46. Assume the conducting shell is at zero potential.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Illustrate what kinds of policies are required to reduce

Explain poor benefit from growth. Illustrate what kinds of policies are required to reduce the magnitude and extent of absolute poverty.

  The description of a rational choice

what aspects of your decison-making process fit the description of a rational choice. did you consider costs and benifits?

  Calculate steady state capital

Changes in government spending and interest rates

  Calculate the real income for grandfather

Your grandfather's salary was $10,000 in 1967 and it was $40,000 in 1997. Assume the price index for 1967 was 100 and the price index for 1997 was 420. Calculate the real income for your grandfather in 1997.

  Explain dramatic rise in the price of college education

Over the last 30 years in the United States, the real price of a college education (i.e., after adjusting for inflation) has increased by almost 70 percent. Over the same period, an increasing number of high school graduates

  Presently you have to decide on a strategy

Presently you have to decide on a strategy - will PM Company simply sell its products (trade) or expand its markets via investment.

  Coca-cola-company run from your garage

Which bond would you expect to pay a higher interest rate? Explain why.

  Question about expected value

Outdoor Sports Corporation, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45 percent chance of occurring,

  Productivity of the population is an example

Vaccinating people for measles, rubella, polio, and cholera to substantially increase net social benefits by improving the health and productivity of the population is an example of

  If the needs return on the stock present share price

If the needs return on the stock is 13 percent, what is the present share price.

  Explain how to catch mice in order to survive

Fit each of the following examples into one of the three reasons for trade: I. Division of knowledge II. Economies of scale/creating competition III. Comparative advantage a. It is the 1950s.The American auto industry makes mediocre cars at high p..

  Explain how immigration impact citizens in the u.s.

After 9/11 our world as we knew it has changed dramatically. Thinking about future actions by government officials, what public policies do you think need to be put in place that has not already been addressed?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd