Author Question: Fair insurance A) has an expected value for the policy holder of zero. B) has a positive ... (Read 50 times)

NClaborn · **on:** Jul 1, 2018

Fair insurance

A) has an expected value for the policy holder of zero.
B) has a positive expected value for the insurance company.
C) has very high insurance premiums.
D) is available only to those who fully insure.

Question 2

The optimal treatment of a tax on a stock of wealth depends ____.

a. on how the flow of income from that wealth is taxed
b. on how the stock itself is taxed
c. on whether or not there is an estate tax
d. on the size of a stock