PRINCIPLES OF MICROECONOMICS (OER)
2nd Edition
ISBN: 9781947172340
Author: Timothy Taylor, Steven A. Greenlaw
Publisher: OpenStax
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Textbook Question
Chapter 16, Problem 22CTQ
To what sorts of customers would an insurance company offer a policy with a high copay? What about a high premium with a lower copay?
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O To protect against the risk of a natural disaster
O To protect against the risk of serious illness
O To protect against the risk of a car accident
O To protect against the risk of income loss
Chapter 16 Solutions
PRINCIPLES OF MICROECONOMICS (OER)
Ch. 16 - For each of the following purchases, say whether...Ch. 16 - Why is there asymmetric information in the labor...Ch. 16 - Why is it difficult to measure health outcomes?Ch. 16 - Why might it be difficult for a buyer and seller...Ch. 16 - What do economists (and used-car dealers) mean by...Ch. 16 - What are some ways a seller of goods might...Ch. 16 - What are some ways a seller of labor (that is,...Ch. 16 - What are some ways that someone looking for a loan...Ch. 16 - What is an insurance premium?Ch. 16 - In an insurance system, would you expect each...
Ch. 16 - What is an actuarially fair insurance policy?Ch. 16 - What is the problem of moral hazard?Ch. 16 - How can moral hazard lead to more costly insurance...Ch. 16 - Define deductibles, copayments, and coinsurance.Ch. 16 - How can deductibles, copayments, and coinsurance...Ch. 16 - What is the key difference between a...Ch. 16 - How might adverse selection make it difficult for...Ch. 16 - What are some of the metrics economists use to...Ch. 16 - You are on the board of directors of a private...Ch. 16 - A website offers a place for people to buy and...Ch. 16 - How do you think the problem of moral hazard might...Ch. 16 - To what sorts of customers would an insurance...Ch. 16 - Using Exercise 16.20, sketch the effects in parts...
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Similar questions
- How can insurance companies offer a guarantee to pay for certain medical expenses? How do they determine the appropriate premium to charge?arrow_forwardDescribe this insurance scorecard claims.arrow_forwardDavid Herbert earns $2,475 a month as a security guard for Baldwin Enterprises. His group medical insurance costs $3,300 a year. The company pays 80% of the cost of group insurance. How much is deducted each month from his paycheck for medical insurance?arrow_forward
- Ruth Lockwood earns $2,917 a month as a supervisor for Acme Steel. Her group medical coverage costs $3,120 per year. The company pays 75% of the cost of group insurance. How much is deducted each month from her paycheck for medical insurance?arrow_forwardMisty is single and has chosen Plan Q. Misty has not used her health insurance yet this year. Misty goes to the hospital for some services and her portion of the bill is $5,000. How much did Misty’s insurance pay for their portion of the bill?arrow_forwardIf you understand the principles of insurance, you will understand why it probably makes sense to purchase insurance to guard against large losses, like the destruction of a home you own, but probably does not make sense to purchase insurance to guard against small losses, like the failure of a TV you buy.arrow_forward
- what was the relationship between the premiums, deductibles, and coverage limits for your insurance coverage?arrow_forwardHow can you use Microsoft Excel and your agility and problem solving skills to understand the level of risk involved in selecting the appropriate insurance to achieve your goals. How will problem solving, productivity, technology, and agility help you achieve your personal and professional goals?arrow_forwardInsurance needs change throughout a person’s lifecycle because people’s needs change. True or Falsearrow_forward
- Explain the purpose of insurance. If a mother purchases health insurance for her and her four (4) children, who is the policyholder, and who is (are) the beneficiaries?arrow_forwardFrom utility theory, the demand for insurance depends on the level of risk aversion (i.e. how much you hate uncertainty), the cost of insurance (i.e. if it is within your willingness to pay), as well as wealth. Can you think of anything else that affects demand for insurance?arrow_forwardWhat kind of insurance pays for you to be in a nursing home? O Health insurance O Disability insurance O Long-term care insurance O Liability insurancearrow_forward
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