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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?
"Fewer and fewer Americans support our government's trade policy. They see a shrinking middle class, lost jobs and exploding trade deficits. Yet supporters of free trade continue to push for more of the same - more job-killing trade agreements."
Do some research and find the inflation rate and the level of unemployment in the U.S. economy for the past 40 years. Is there a relationship between the two? If so, what type of relationship?
Elucidate is the fiscal policy expansionary or contractionary.
Why or why not Also, there are several theories about the reason one yield curve is shaped the way it is and why it changes from time to time. What are they Is there one that you believe explains the shape better than the others
Until the twelfth century, Latin was the language used between the educated and within literature. Research and report on the origins of vernacular language, and its spread. Assess and evaluate the impacts the spread of vernacular languages on cul..
A taxi driver plans to pick you up at the airport and drop you off at the bank so you can complete some financial transaction before you head home. He notes that the change in vehicle operating cost (VOC) is 42 cents per mile. Given that his fuel con..
Concerned about the crowding-out effects of government borrowing on private investment spending, a candidate for president argues that the US should just print money to cover the government's budget deficit.
The kinked demand curve in an oligopolistic market is defined by the equations: P = 140 - 0.5Q, and P = 200 - 2Q. a) Derive equations for the marginal revenue curves. b) Determine the price and quantity at the "kink" of the demand curve.
The average cost per person for crashes in the Tampa, Florida, area was reported to be $1599. Suppose this average cost was based on a sample of 39 persons who had been involved in car crashes and that the population standard deviation is ? = $700..
Assume that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed following levels of production corresponding to different numbers of workers:
The government uses policies like student loans and free trade to influence economy's incremental rate.
A toy rocket is launched from a 3.5 m high platform in such a way that its height, h (in meters), after t seconds is given by the equation h=-4.9t + 23.8t +3.5. How long will it take for the rocket to hit the ground?
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