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When you buy motor insurance the policy will generally stipulate that the policyholder is responsible for the first part of any claim; for example, you might have to pay the first €250 or €1,000 of any claim and the insurance company would pay the rest ans so the amount you would have to pay forms the deductible.
i) Explain how this arrangement help to deal with the problem of moral hazard?
ii) Explain how this arrangement help to deal with the problem of adverse selection?
Explain the relationship between total, average, and marginal concepts and how these measures are important to optimization examine
Explain the causes of recent recession and when it started and when it technically ended. Finally why the recent recession was called the worst recession after the great depression.
The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP, and indicate in each calculation whether you are inflating or deflating the nominal GDP data.
suppose the microchip producer faces demand and cost equations given by q 8.5 - 0.5p and c 100 38q. choosing to treat
Let's suppose that the weight of male giraffes is normally distributed with mean 1200 kg and standard deviation 200 kg.- What is the posterior expected value of Beau's weight?
Which of the following statements about productive efficiency is true? X It means that an economy is producing at a point on its production possibility frontier.
a. Compute the present value of the operating cash outflows for the old machine b. Compute the present value of the operating cash outflows for the new machine c. Compute the present value of the cash operating savings if the new machine is purchased..
1. which of the following statements concerning the marginal-physical-product curve above is true?atotal physical
1. What is product differentiation. 2. List all the advantages and the disadvantages of product differentiation.
With the following data, calculate the firm's AVC and MVC and draw the graphs for TVC, AVC and MVC. Why is MVC the same as MC
As an employee of the World Bank, you have been asked to research 1 economic concern in an Asian country and write a report on your findings.
In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions?
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