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Author Question: Which of the following is a tool used for protectionism? A) Service tax B) Bank rate C) Tariffs ... (Read 246 times)

jhjkgdfhk

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on: Jun 29, 2018
Which of the following is a tool used for protectionism?
 
  A) Service tax
  B) Bank rate
  C) Tariffs
  D) Open market operations

Question 2

Why do insurance companies in many developing countries not offer full health insurance coverage to older applicants?
 
  What will be an ideal response?


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gcook

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

Older applicants are more likely to fall ill than younger applicants. Therefore, if the insurers were to offer full insurance coverage to these customers, they will require a higher premium. If the premium is high, low-risk individuals are less likely to buy the insurance, leading to the problem of adverse selection.


jhjkgdfhk

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

sultansheikh

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Reply 3 on: Yesterday
Gracias!

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