Signalling is a way of solving: O a. dynamic problems. b. adverse selection problems. O c. coordination problems. O d. moral hazard problemns.
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- What health promotion approach is economical, and can have long-term effects in profoundly reducing many diseases across the lifespan, reduce social services & minimize incarceration? O Community Health Fairs to measure vital signs provide free Secondary Care screening O Prevention initiatives facilitating universal Mother-infant Attachment & care O Arranging for a Walking Group in any neighborhood is low-cost & may prevent crime O Improving supermarket selection at a reasonable price prevents illness & hungerSuppose the market for auto insurance is made of up two types of buyers: high-risk and low-risk. Buyers’ willingness to pay (WTP) for auto insurance plans, and sellers’ willingness to accept (WTA) when selling plans to each type of buyer, are outlined in a photo (a) In a world with perfect information, would the market for insurance plans clear? If not, why? If yes, what are some prices that would a llow both markets to clear? The prices in each market are allowed to differ Assume now that there is asymmetric information and that insurance companies do not know how risky an individual buyer is. In the face of this uncertainty, they determine that the probability that a “walk-in” is high-risk is 0.75. What is the minimum price sellers are willing to accept when selling an insurance plan? At this price, will low- and high-risk buyers both be willing to purchase this insurance plan? Explain. Be sure the mention adverse selection in your answer.30. Which ethical standard most closely supports insider trading restrictions?a. Utilitarianismb. Human Rightsc. Justiced. Caring
- Which of the following is NOT an example of moral hazard? Joey borrowed $20,000 from a bank to open a coffee shop but he actually spent the money to buy a fancy race car. O A man with a family history of high blood pressure buys a health insurance policy. A homeowner with fire insurance on the house smokes in bed. O A bank with a high leverage carries out reckless investment plans.TQuestion 1 - All else equal, a car insurance plan that offers less full insurance coverage will produce less moral hazard. O. True O. False Question 3 - Many states have laws requiring health insurance policies cover the treatment of diabetes. One study found that after the passage of these laws, diabetics weight increased, which complicates the treatment. This is an example of moral hazard. O. True O. FalseUnder what circumstances would the trading price of a peach be guaranteed to be exactly $500 when there is full information? A.Never; it is not possible for a peach to ever be sold at that price B. When there are relatively many sellers C. When the number of buyers and sellers are equal D. When there are relatively many buyers
- 1. When insureds are fully covered by their insurance policies, moral hazard means: a. Some b. Some с. The d. The insurer insureds insurer pays less compensation insureds tend to tend to minimizes minimize maximize risks risks risks Which of the following goods is not a substitute A copy b. A Beethoven's d. An a. C. service trading handwritten ebook in a library service sheet music from a from a publisher broker Pricing means Only financing Only allocating b. Only Pricing has dual а. C. d. functions the functions the as an allocation production of goods supply of services mechanism Risks mean being: b. not possibilities of loss in a. not C. d. not sure sure sure about the about about businesses future the the market honesty of a product quality sellerOvert collusion is also known as rule based collusion Select one: a. TRUE O b. FALSEfollowing situations may give rise to moral hazard:[Select all the correct options below.]O. The willingness to pay of buyers are unknown to the monopolist.O. The effort exerted by an agent to complete a task cannot be observed.O Buyinga laptop battery online, that may have be a counterfeit.O. A health insurance not knowing whether their customers engage risky behaviour (like smoking) or not.O. A shop manager not able to tell whether an employee keeps some of the change.O. Politicians receiving undisclosed payments from lobbying companies.
- Before selling anyone a health insurance policy, theKramer Insurance Company requires that applicantsundergo a medical examination. Those withsignificant preexisting medical problems are chargedmore. This is an example ofa. moral hazard.b. adverse selection.c. signaling.d. screening.one of the following is not a physical functioning component Select one: O a. activities of daily living O b. life satisfaction O c energy level O d. bodily pain V > 1:46 drug A cost 5000 $ and 4 QALYS drug cost 10000S and 3.5 QALYS calculate CUA CEA Select one: O a. A dominant for both O b. B dominant for both O C.A dominant in CUA O d. A dominant in CEAWhich of the following explains why the owners of used cars tend not to sell them at a low price offered by skeptical buyers? O a Condorcet paradox. a screening problem. O a moral hazard problem. O an adverse selection problem.