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

Author Question: Suppose you are asked to use the standard time trade-off approach to measuring quality of life and ... (Read 80 times)

luminitza

  • Hero Member
  • *****
  • Posts: 555
on: Jul 1, 2018
Suppose you are asked to use the standard time trade-off approach to measuring quality of life and are given the following information. An individual is faced with living the remaining 10 years of her life suffering from severe osteoporosis. She reveals that she would be willing to give up four of those years to live the remaining six in perfect health. What is the utility of one year in the chronic health state relative to perfect health?
 a. 4
  b. 6
  c. 0.4
  d. 0.6
  e. There is not enough information to determine the utility of life in this case

Question 2

Which statement best characterizes the second-best policy offered by a monopoly insurer when it can't observe the consumer's risk?
 a. It is a single contract offering partial insurance at an intermediate price such that all types are served.
  b. It is a menu of contracts providing full insurance for the least risky types and partial insurance for higher risks.
  c. It is a menu of contracts providing full insurance for the riskiest type and partial insurance at lower prices for lower risks.
  d. The market breaks down since the monopolist cannot design contracts without observing each consumer's risk.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bfulkerson77

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

c


luminitza

  • Member
  • Posts: 555
Reply 2 on: Jul 1, 2018
Gracias!

bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Phylogeny of the three domains of life Phylogeny of the three domains of life
Crying Frequency in the Early Months In their first months of life, infants often cry for no appare Crying Frequency in the Early Months In their first months of life, infants often cry for no appare
A sidewheeler on the Mississippi. In 1856 Samuel Clemens became an apprentice to a steamboat pilot a A sidewheeler on the Mississippi. In 1856 Samuel Clemens became an apprentice to a steamboat pilot a
Measuring the Weight and Length of an Infant Measuring the Weight and Length of an Infant
Food, friends, and football . . . a way of life Food, friends, and football . . . a way of life
Oxidative stress can begin in childhood and lead to progressive damage throughout life Oxidative stress can begin in childhood and lead to progressive damage throughout life
Video: HIV replication/ Replication cycle of HIV

For a complete list of videos, visit our video library