A deductible reduces ________ in exactly the same way as ________.   Question 10 options:   a)  moral hazard; cancellation of insurance   b)  moral hazard; coinsurance   c)  adverse selection; restrictive provisions   d)  adverse selection; limits on the amount of insurance

Q: 3. The figure below demonstrates the moral hazard with insurance coverage. When consumer pays 50%…

A: A moral hazard indicates that a party may function differently than they would retain without the…

Q: When a moral hazard problem exists for automobile driving, the marginal cost of driving (A) is…

A: This can be defined as a situation in economics where asymmetric information between buyers and…

Q: 4. Moral hazard and health insurance pricing a. On a graph with fullness of coverage on the x axis…

A: The health insurance market involves buying and selling insurance or guaranteeing health expenses…

Q: Which of the following represents an effort to correct for an adverse selection problem? a. The…

A: When talking about adverse selection, it is one of the form of asymmetric information, which causes…

Q: 31. You may be unwilling to buy a used car because you suspect the last owner found out the car was…

A: The lemons dilemma refers to challenges that develop when the buyer and seller have unequal…

Q: Economics 1. Does the demand for healthcare services vary in size with the affordable costs? 2.)…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. When an auto insurance company is​ screening, it is   A. attempting to keep its private…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Now assume that there are two types of individuals in the market, Frail and Robust. Both individuals…

A: In the markets of insurance, a zero-profit line shows the zero expected profit for insurance…

Q: Asymmetric information can lead to adverse selection which means: a. Only a specific subset of a…

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: Which of the following statements is correct?   a. Adverse selection arises when one party to a…

A: In the free market, resources are optimally allocated by the forces of the demand and supply but due…

Q: The hot water heater explodes and damages some household contents. The actual cash value of the…

A: A basic homeowners insurance coverage is referred to as a HO3 policy. It is, in essence, a contract…

Q: Suppose an insurance company wants to charge a very healthy individual a premium of $1,200 a year…

A: The number of reports should the company request (X) can be calculated by using the following…

Q: 11) Consider a market for used cars. Suppose there are only two kind of cars: lemons and good cars.…

A: Adverse selection:This is a finance and insurance term that in practice refers to a situation where…

Q: When you are shopping for a used car, Carfax is a great resource. It offers the history of the…

A: In a market, a used good or product refers to the one that is offered by one consumer, who owns a…

Q: The following is/are public health insurance program offered as safety nets to insure low income…

A: In India, public health insurance programs are designed as safety nets to insure low-income…

Q: Consider the market for auto insurance. Insurers will gain some useful information about the…

A: GIVEN   the market for auto insurance. Insurers will gain some useful information about the…

Q: 10.1. SafetyNet TM. SafetyNetTM was a simple insurance plan de- signed to help people if they lost…

A: Insurance is a tool that enables the risk transfer from the insured (who is taking the policy) to…

Q: 2018 2019 Insured? Average Insured? Average Expenditures $4,000 Expenditures Chemistry No Yes $6,000…

A: Moral Hazard is basically a situation where there is a possibility of a change in behaviour when one…

Q: (a)Explain what is meant by "asymmetric information." Identify and explain the two basic types of…

A: Answer to the question is as follows:

Q: 12. To prevent adverse selection, health and life insurance companies   Question 12 options:   a)…

A: Adverse selection in the insurance industry is defined as a situation in which insurance coverage is…

Q: 2.) Two sources of inefficiency that managed care attempts to address are moral hazard and demand…

A: Two sources of inefficiency that managed care attempts to address are moral hazard and demand…

Q: As an economist, please consider the extent to which the increasing enrollment in…

A: There are various reasons why increased government-sponsored healthcare enrollment may justify…

Q: 12. Consider the graph below. Marginal cost of safety Marginal safety benefit + safety 0. no risk…

A:

Q: 2. What are the Moral Hazard Effects of Social Insurance Programs? Give Examples

A: The situation where the buyers and sellers of a product do not possess complete information…

Q: 2) You have seen how asymmetric information Can reduce the average quality of products sold in a…

A: In a situation of asymmetric information, one party to a transaction (such as a buyer or a seller)…

Q: 1. T/F Price sensitivity varies accordingly to the type of medical service.

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Problem 1: Estimate the benefits from increasing the protection for 50,000 powerplant workers.…

A: A probability appropriation is a factual capacity that depicts every one of the potential qualities…

Q: Consider the following statements: (1) While life expectancy in the US is positively correlated with…

A: The optimal allocation bundle in an economy is the bundle that provides the maximum satisfaction to…

Q: 4) You have seen how asymmetric information Can reduce the average quality of products sold in a…

A: When information about a product is available to the customer but not to the supplier, an asymmetric…

Q: 3. Briefly explain how asymmetric information in the used car market can result in adverse selection…

A: Asymmetric information refers to a scenario where one side to a transaction has access to more…

Q: Why do insurance companies have to charge such a high premium, which limits the number of consumers…

A: Externality:It is an economic problem when people take benefit from the economic goods. It is…

Q: may arise. This is when _____.    A. Bismarck; insurers seek out healthy customers.  B. Beveridge;…

A: The Bismarck and beveridge are two popular health care systems where the two different methods of…

Q: Question 19 An award of punitive damages will encourage the efficient level of precaution when O the…

A: An award of punitive damages will encourage the efficient level of precaution when the injurer's…

Q: _____ is when everyone in a country is covered by insurance that is run and administered by the…

A: An insurance contract is a legal arrangement between a person or organization (the policyholder) and…

Q: Why isn't healthcare just another good? A. Healthcare is an investment B. Healthcare suffers of…

A: The concept that depicts improvement or maintenance of health through diagnosis, treatment, or cure…

Q: 10.2. Missing insurance markets. There are many missing insur- ance markets. Consider the following…

A: The scenario in which one party takes on more risk because that party knows they do not have to bear…

Q: Consider the nation of Healthland and one of its citizens, Gary. Gary has wealth of $25, utility…

A:

Q: The premium of health insurance consists of these two factors: 1.Expected payment to health care…

A: The Health Insurance Premium is the amount of money needed to pay periodically to an insurer in…

Q: Question 60 options :   What is the best way for governments to intervene to prevent moral hazard ?…

A: Moral hazard is a type of market failure. Presence of moral hazard leads to the creation of market…

Q: a. What is the cause of the social loss? Briefly explain. b. Why do we have health insurance if…

A: After the deductible has been met, an insured must pay a coinsurance amount, which is usually…

Q: 5. Candace was eating French fries and talking on the phone as she sped through traffic on the way…

A: Here, the given situation explains the careless behavior of Candance at the road due to which she…

Q: 1. What are the four pillars of Moral Education in teaching and learning? What are the benefits of…

A: Four pillars of moral education in teaching and learning are as follows :- 1. Character and morality…

Q: costs

A: Marginal Cost:Marginal Cost is a concept in economics that refers to the additional value incurred…

Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.