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"Moral Hazard" Please responds to the following: In 2020, a leading insurance company started a policy that pays a policy holder a five percent rebate on their insurance premium in a year in which the policyholder does not file an insurance claim. For example, a household with an annual premium of $1,200 will get a $60 rebate check each year it does not file a claim. Identify what problem(s) the insurance company is trying to solve by introducing this policy. Decide whether the above policy benefits the insurance company or the policy holder. Provide support for your response.
Presume that the dependent variable in your regression has a non-normal distribution, even after controlling for the x variables (In other words, MLR.6 is violated). Under what circumstances can the OLS coefficients and standard errors still are util..
To what degree do you think the Open Source business models described in the MySQL case study will eventually supersede more traditional business models?
Presume a bank is faced with two kinds of borrowers- a high risk borrower that must be charged an interest rate of 9% and a low risk borrower that must be charged an interest of 4%. There is a 30% chance of getting a high risk borrower and a 70% chan..
What are the necessary conditions to make price discrimination work and the best practices to use price discrimination to maximize profits while avoiding price wars? In your discussion make evident the challenges of the strategy even in markets where..
Do Okun's law and the short-run Philips curve appear to be related concepts? Would a breakdown in the Okun's law relationship strengthen or weaken the case for active policy making?
The transactions demand for money is most closely linked to money's function as a:
The combination of rational expectations and perfectly competitive markets is best reflected in which of the following models?
While very few markets are 'purely competitive' according to the strict economics definition, market analysts often use competition as the: Benchmark from which to judge other market settings
Presume the government decides to increase taxes by $20 billion to increase Social Security benefits by the same amount. How will this combined tax transfer policy affect aggregate demand at current prices?
Imagine a society that reduces military good and customer goods, which we will call “butter” and “guns”. Draw a production possibilities frontier for butter and guns. Using the concept of opportunity cost, describe why it most likely has a bowed-out-..
Calculate the following for Brian and Kim's firm
youre biomeds resident economic expert. harry the ceo is asking you to complete a time-sensitive project that another
Write an assembly language subroutine
Use supply and demand analysis to describe why equilibrium price of apples will increase and the equilibrium quantity will fall if an excise tax is levied on apples.
Compute the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect t..
What would happen to the short-run equilibrium price and quantity of magnesium if a major (economically large) magnesium mine had to close due to environmental regulation? Assume the supply is elastic and demand is inelastic.
A monopolist is maximizing profit at an output rate of 1,000 units per month. At this output rate, the price that its customers are willing and able to pay is $8 per unit, average total cost is $5 per unit, and marginal cost is $6 per unit. It may..
suppose you are a painter and the price of a gallon of paint increases from 3.00 a gallon to 3.50 a gallon. your usage
cost curvessuppose a firm has a total cost functiontc 23q3 -q2 30qa derive the mathematical expressions for the mcatc
1. for each of the following determine whether it is a private good public good common resource or a club good.a.
A growing number of businesses' including videogame developers, cigarette companies, soft drink producers, liquor marketers, and fast food chains are feeling the heat from government, the press, and society at large for encouraging harmful consume..
What are the types of circumstances under which price discrimination violates antitrust? Use the handout to illustrate your answer (examples included in Section 15.5 – Antitrust: Price Discrimination and the Robinson-Patman Act).
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