Which should you choose and why

Reference no: EM132178315

Question: You have two possessions you would like to insure against theft or damage: your new bicycle, which cost you $800, and a painting you inherited, which has been appraised at $55,000. The painting is more valuable, but your bicycle must be kept outdoors and is in much greater danger of being stolen or damaged. You can afford to insure only one item. Which should you choose? Why?

Reference no: EM132178315

Questions Cloud

Which of characteristics of a competitive market is violated : In the market for gold jewelry (unlike the market for gold ore), products come in a range of designs, styles, and levels of quality.

What does tell you about the competitiveness of the market : You stop by a crafts fair and you notice consumers haggling with vendors over prices. What does this tell you about the competitiveness of this market?

Would the policy reduce adverse selection and moral hazard : Requiring every American to get mandatory health care insurance has been a controversial part of health care reform debates in the United States.

What is the rate of return now : Suppose that the hedge fund only invested $50,000 of its capital due to margin trading. What is the rate of return now

Which should you choose and why : You have two possessions you would like to insure against theft or damage: your new bicycle, which cost you $800, and a painting you inherited.

What is the efficiency loss ratio of the tax : Suppose that a $2 per arrow is levied on the sale of arrows. What is the efficiency loss ratio of the tax? What is the excess burden (DWL) of the tax

Which is the more risk-averse option : You are considering buying one of two types of health insurance. You guess that in the next year there is a 1 percent chance of serious illness.

What can we assume about the policies : Cora had two options when buying car insurance. Option A had a higher expected value, but Cora chose option B. From the list below, what can we assume about.

Discuss the issues that may be raised in employment law : Discuss the issues that may be raised in employment law and substance abuse policies with respect to the legalization of recreation and medical cannabis.

User Account

All Pages