Consider the table below, which has data on insurance status and medical expenditures for different types of professors at Hypothetical University (HU), economics & mathematics professors. Assume that there are an equal number of economics and math professors. Assume further that econ professors all have the same level of health and math professors all have the same level of health. In 2000, every professor was offered a full insurance contract with no premium. In 2001, HU charged any employee who wanted to keep health insurance the actuarially fair premium based on 2018 expenditures. This premium would be equal to ____ and, as a result,_____ professors dropped their coverage in 2019. Economics Professors Yes Math Professors Yes $10,000; none $20,000; econ $15,000; econ $15,000; math 2000 2001 Insured? Avg. Expenditures Insured? Avg. Expenditures $20,000 $20,000 $10,000 $7,000 $20,000; math ??? ???

Consider the table below, which has data on insurance status and medical expenditures for different types of professors at Hypothetical University (HU), economics & mathematics professors. Assume that there are an equal number of economics and math professors. Assume further that econ professors all have the same level of health and math professors all have the same level of health. In 2000, every professor was offered a full insurance contract with no premium. In 2001, HU charged any employee who wanted to keep health insurance the actuarially fair premium based on 2018 expenditures. This premium would be equal to and, as a result,_ professors dropped their coverage in 2019. Economics Professors Yes Math Professors Yes $10,000; none $20,000; econ $15,000; econ $15,000; math 2000 2001 Insured? Avg. Expenditures Insured? Avg. Expenditures $20,000 $20,000 $10,000 $7,000 $20,000; math ??? ???

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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