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An article in the Economist magazine contains the following description of the "classic adverse selection spiral": "because [health insurance] premiums go higher, healthy people become even less likely to buy insurance, which drives premiums higher yet, and so on until the whole thing winks out. . . ." Why does an adverse selection spiral develop? What steps can insurance companies take to avoid it? Source: "Romney on Health Care: To Boldly Go Where He Had Already Been Before," Economist, May 13, 2011.
You decide to open a retirement account at your local bank that pays eight percent/year/month (eight percent per year compounded monthly). For the next 20 years, you will deposit $600 per month into the account, with all deposits and withdrawals occu..
Daddy Warbucks has given his niece the following choice. She can choose between twodifferent inheritance bundles. Bundle F consists of $100 tomorrow and $10 today. Bundle Pconsists of $30 tomorrow and $60 today. His niece can borrow and lend money at..
How does the co-insurance policy affect the quantity of doctor visits consumed? Calculate the deadweight loss associated with the existence of insurance.
Consider the following information about a hypothetical economy: C= 12500+ 0.8(Y-T)I= 2000 - 100rG= 2500; T= 3125
Assume that the government imposes a $20 minimum wage. Find the new quantity of labor demanded and supplied.
m.d. einstein is considering what she should do for the rest of her life.she is considering becoming a brain surgeon.
some oakland california residents are sick and tired of tripping over burger wrappers and soda cans and the city is
What is the business cycle and how is it relevant to economics?
What price would you bid if you must win the project - What price would you bid if you want to maximize the expected value of the contribution from this contract?
Phil has two periods of work remaining prior to retirement. Assume that Phil maximizes the present value of his expected lifetime earnings and his discount rate is 10 percent. He is currently employed in a firm that pays him the value of his ma..
illustrate the market for oranges with a supply and demand diagram. what would happen to equilibrium price and quantity
comparative advantage can explain why people pursue different occupations. it can also explain why countries produce
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