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Q. 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 declare bankruptcy if they get in an accident. In bankruptcy, creditors receive only what individuals have in bank. Elucidate 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?
why is growth in average labor productivity viewed as a key factor in determining long-run living standards?
This is largely because the Chinese government makes sales in China contingent on a company's willingness to locate production there. The government wants Chinese companies to learn modern management skills from other international companies.
Assume , at its present rate of output, a perfectly competitive firm's marginal revenue exceeds both its marginal cost and its average variable cost. To maximize profit, the firm should.
The cause and effect on how and why there was a government shut down a month ago.
q.sometimes a bidder on a work contract may bid lower than what would maximize hisher profit from the contract and the
q1. suppose as in the federal income tax code for the united states that the representative consumer faces a wage
If the price of soda is $1 every can, Elucidate how many sodas will the consumer purchase in a typical month.
What would be the new equilibrium in this economy if Investment increased by $12.
What would peso/dollar exchange rate be if purchasing power parity holds. If a monetary expansion caused all prices in Mexico to double.
q1. cost mart reduces the cost of a 42 inch tv plasma from 1200 to 1000. as a result sales of tv plasmas increased from
q.assume that two companies c and d are duo-polist that produces identical products. demand for the products is given
Illustrate what can you infer about the expected changew in the exchange rate between the Canadian dollare and the U.S. dollar.
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