What are the consequences for the market for insurance

Assignment Help Finance Basics
Reference no: EM131304322

An article in the Economist magazine observes: "Insurance companies often suspect the only people who buy insurance are the ones most likely to collect."

a. What do economists call the problem being described here?

b. If insurance companies are correct in their suspicion, what are the consequences for the market for insurance?

Reference no: EM131304322

Questions Cloud

What type of asymmetric information problem is present here : The sales person assures you that the car is in great shape and has had no major problems. What type of asymmetric information problem is present here? How can you get around the problem?
How you plan to use information from your career : Describe in 3-4 sentences how you plan to use information from HCA 340 in your career, regardless if you find yourself working in a health related field.
How should you view someone selling a used car : How should you view someone selling a used car? Why might you want to view someone selling a financial investment the same way?
What strategies can you implement to increase productivity : Additionally, your staff is wearing multiple hats; many working to register, bill, code, schedule and assist with back house operations. What strategies and tools can you implement to increase productivity, reallocate resources and boost employee ..
What are the consequences for the market for insurance : If insurance companies are correct in their suspicion, what are the consequences for the market for insurance?
Roles of managers and leaders in the diversified health care : How these functions aply to managing others or even yourself in your current or previous job. Roles of managers and leaders in the diversified health care industry.
What is the difference between ethics-morals and values : What is the difference between ethics, morals and values.
What is transparency in this instance : Why won't financial markets work without good information and transparency?
Which investments should be included in theos portfolio : Which investments should be included in Theo's portfolio? How much should he invest in each? Which investments should be included in Theo's portfolio?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd