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Suppose that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000. Suppose there are two types of individuals: those with $60,000 in the bank and those with $5,000 in the bank. Assume that individuals with $5,000 in the bank declare bankruptcy if they get in an accident. In bank-ruptcy, creditors receive only what individuals have in the bank. What is the actuarially fair price of insurance? What price are individuals with $5,000 in the bank willing to pay for the insurance? Will those with $5,000 in the bank voluntarily purchase insurance? What is the effect of state laws forcing individuals to purchase auto liability insurance?
Need 100 words or more please
If you are near graduation and plan to start your new job in 3 weeks, how does the Bureau of labor statistics classify you? Unemployed, employed or notin labor force.
Using the same product example above, analyzing how the risk tolerance factors play in supplying the good or service and how this should influence management’s decisions.
For a linear (inverse) demand function, increases in output will cause total revenue to increase when marginal revenue is:
Discuss in detail any two supply-side policies and how they are supposed to work, and describe more generally the supposed benefits and disadvantages of supply-side policies as opposed to expansionary demand management policy options
A 50-kilowatt gas turbine has in investment cost of $40,000. It costs another $14,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $450 per year. Additionally..
US and Canada can both grow wheat and can do mining. Use the following table to look for which country has a comparative advantage in mining. (Hint: Find the cost of mining in terms of wheat in each country.)
Suppose that Best National Bank currently has $50,000 in demand deposits and $32,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Required Reserves?: Excess Reserves?:
Monsanto, Corp paid dividends of $2.80 last year. Over the next three years the earnings and dividends are expected to grow by 10% per year. Thereafter, assume that the dividends will grow at a 5% rate forever. If investors required return on Monsant..
The methodology of combining forecasts is best described as
The HRB Corporation is the world’s only manufacturer of air filters for Zamboni engines. Last year, HRB charged $20 per filter and sold 1 million of them, and it paid all of its production workers $10 per hour. What is the elasticity of demand for Za..
Does Defense Spending include transfer payments? Does Welfare (TANF) include transfer payments? Does Interest payments on government debt include transfer payments? Does social security include transfer payments?
I understand that inflation has an impact on the foreign direct investment. But can the opposite be true? The amount of foreign direct investment has an impact on the inflation of the country that receives the investment?
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