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1. Suppose there are two kinds of people in society who are equally represented -those with 20% chance of developing diabetes next year, and those with 2% chance of developing diabetes next year. Individuals know their own risks but the insurers cannot discern this information. There is no mandate to be insured, so purchasing health insurance is voluntary in this society. Diabetes costs $12,000 to treat. If you are an insurer who will offer a full coverage policy, what should you set as your premium, and why? Please explain the difficulty you face as an insurer in figuring out the optimal premiums to charge in this situation.
based on the information provided for the market for video games answer the following questions.priceq demandedq
During the job interview, the Vice President understood that you had received rigorous training in managerial economics, and you were able to choose some appropriate methods to predict the market movement.
A machining process produces specialty metal parts used in aircraft. A particular part is designed to be 62 cm in length. The machine is set to cut at 62 cm but the process is stochastic with a mean length of 62 cm and a standard deviation of 0...
(Money Supply Versus Interest Rate Targets) Assume that the economy's real GDP is growing. a. What will happen to money demand over time b. If the Fed leaves the money supply unchanged, what will happen to the interest rate over time
calculate the formulas for the monopolists' FC, VC, ATC, AVC, and AFC. calculate the profit - maximizing choice of output, price, and profits. Also, how come, in a perfectly competitive market, the burden of a tax is shared in the short run? Also, ..
The general demand function for a good, Good A, is: Is Good A a normal good or an inferior good? How do we know exactly?
do economic profits attract new firms into an industry? how do economic profits attract new firms
Suppose that the goverment of the city of Udellum, wich has a Baa credit ratng issues a bond with the same time to maturity in a market that is just as liquid as the market for corporate bonds. Suppose that investors have a federal tax rate of 30 ..
describe what you would do in the situation. integrate the elements of reasoning andor intellectual standards to show
many movie critics claim that horror movies nowadays are more violent and bloody than they used to be. write an essay
Estimate the regression model (E) using the OLS estimator and provide a summary report of the result (i.e., the estimated equation with the standard errors and/or t-ratios with other relevant statistics).
Several years ago, American Economic Review published a paper in which the author claimed giving gifts at Christmas was "inefficient." Instead of giving gifts, which the receiver might not want, it would be better to give money so that the recipie..
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