This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the company can correctly anticipate the adverse selection, what premiums would it charge? a. ... (Read 92 times)

WhattoUnderstand

  • Hero Member
  • *****
  • Posts: 517
on: Jul 1, 2018
If the company can correctly anticipate the adverse selection, what premiums would it charge?
 a. 2500
  b. 2600
  c. 1000
  d. 1100

Question 2

If you are willing to purchase a house for 300,00 . and you purchase the house for 275,000 . this transaction will generate:
 a. There is no surplus created
  b. 25,00 . worth of seller surplus and unknown amount of buyer surplus
  c. 10,00 . worth of buyer surplus and 15,00 . of seller surplus
  d. 25,00 . worth of buyer surplus and unknown amount of seller surplus


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cswans24

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

d


WhattoUnderstand

  • Member
  • Posts: 517
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

tuate

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Mosaic of Charge-Coupled Devices (CCDs) Mosaic of Charge-Coupled Devices (CCDs)
The birth weight of human infants is tightly constrained by natural selection. The birth weight of human infants is tightly constrained by natural selection.
Morris and Company, Sussex Rush-Seated Chairs. Morris and Company, Sussex Rush-Seated Chairs.
Instructing a Patient to Use Crutches Correctly Instructing a Patient to Use Crutches Correctly
In the drawing of acetaldehyde, CH3CHO, the largest partial negative charge (-) occurs on In the drawing of acetaldehyde, CH3CHO, the largest partial negative charge (-) occurs on
The effect of disruptive selection on bristle number in Drosophila The effect of disruptive selection on bristle number in Drosophila
Video: Oxygen - hemoglobin dissociation curve & Hemoglobin's affinity with oxygen - acidity

For a complete list of videos, visit our video library