QUESTION 12Under realistic conditions, optimal social insurance systems should:O a. not insure individuals against adverse events.O b. partially, but not completely, insure individuals against adverse events.O c. completely insure individuals against adverse events.O d. prevent adverse events.QUESTION 13When no private market for insurance exists, social insurance programs makeO a. consumption smoothingOb. self-insuranceOc. adverse selectionOd. moral hazardQUESTION 14Moral hazard leads to workers with workers' compensation to set the wage:O a. above the marginal value of leisure.Ob.equal to the workers' compensation payment.O c. above their marginal product.O d. equal to the marginal value of leisure.QUESTION 15In the United States, private insurance exists in each of these product areas EXCEPT:a. auto insurance.b. life insurance.Oc. casualty and property.d. Medicare.possible.QUESTION 16Adrianne is buying a life insurance policy and the underwriter asks her to allow the company to access all her medical records. What is theunderwriter concerned about?a. adverse selectionO b. rent seekingO c. moral hazardO d. X-inefficiency

A government-run programme known as social insurance protects people and families from economic…

QUESTION 12 Under realistic conditions, optimal social insurance systems should: O a. not insure individuals against adverse events. O b. partially, but not completely, insure individuals against adverse events. O c. completely insure individuals against adverse events. O d. prevent adverse events.

QUESTION 12 Under realistic conditions, optimal social insurance systems should: O a. not insure individuals against adverse events. O b. partially, but not completely, insure individuals against adverse events. O c. completely insure individuals against adverse events. O d. prevent adverse events.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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