Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 16, Problem 7RQ
What are some ways a seller of labor (that is, someone looking for a job) might reassure a possible employer who is faced with imperfect information?
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Chapter 16 Solutions
Principles of Economics 2e
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
- Insurance companies are regulated under federal insurance laws. True Falsearrow_forwardRobert decides to start working for the local ridesharing company. He has a large 12-passenger van and thinks he will be in big demand at the airport. He tells his personal car insurance company that he is driving for a ridesharing company, and he needs some additional insurance. He is denied additional coverage. Why? There is no such thing as ridesharing insurance. He lives in a state that doesn’t offer ridesharing insurance. The city he lives in is too small for him to qualify for ridesharing insurance. Many insurance companies will not insure high-occupancy vehicles under their ridesharing policies.arrow_forwardYou are on the board of directors of a private high school, which is hiring new tenth-grade science teachers. As you think about hiring someone for a job, what are some mechanisms you might use to overcome the problem of imperfect information?arrow_forward
- The part of the policy which may request an insured to submit as a proof of loss is called the A.application B.arbitration C.conditions D.insuring agreementarrow_forwardEconomics Was it ethical for Tesla to hire a PR firm to monitor its employees? Yes or No? Write a paragraph to explain your answer. discussionarrow_forwardHow does worker's compensation fraud affect the cost to all employers required to purchase WC insurance?arrow_forward
- Participate in a discussion regarding private information as shown in Section 12.3 in the textbook. Signaling occurs when an informed person takes actions that send information to uninformed persons. The grades and degrees that a university awards to students are signals. They inform potential (uninformed) employers about the abilities of the candidates they are considering hiring. What actions (signals) do you plan to take with your existing or potential employers after receiving your college degree?arrow_forwardWhich of the following is a method used by a government agency to help reduce imperfect information problems? A. Warranty B. Occupational licensing C. Service contract D. Money-back guaranteearrow_forwardDescribe some healthcare situations in which an agent has taken advantage of a principal. Then describe some healthcare transactions that have not taken place because of fears about asymmetric information.arrow_forward
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