Methods for Covering Risk

Met Show more Please answer TRUE OR FALSE . From question 1-10. Explain. Make sure you have correct answers 1/ Methods for Covering Risk. The Law of Large Numbers explains why it is unlikely that the actuarially fair premium for an insurance policy will be the same for a small start up firm as it will be for a large employer such as a university. 2/ Methods for Covering Risk Depending on assistance from family and friends to pay for ones unforeseen medical expenses is an example of an economic trade-off between consumption today and consumption tomorrow. 3/ History of Health Insurance Including the tax subsidy for employer provided health insurance the government provides about 47% of total funds for health care financing. 4/ History of Health Insurance. The U.S. is unusual in the developed world in that it uses a general tax to fund health insurance for the elderly. 5/ Adverse Selection. Title XVII of the Social Security Act of 1965 dealt with the problem of adverse selection in health insurance markets for elderly people. 6/ Adverse Selection & Moral Hazard Bills employer offers a new health insurance benefit which covers preventive and cosmetic dental services including orthodontic care for employees and their family members. If Bill knows his children need extensive orthodontic care he will buy the policy. This is an example of moral hazard. 7/ Adverse Selection and Moral Hazard Bills health insurance covers preventive and cosmetic dental services including orthodontic care for employees and their family members. Bill is willing to pay $30 per month for over the counter teeth whitening strips at the local pharmacy. With his co-pay he learns he can pay $25 per month and receive professional teeth whitening services at his dentist. He chooses to go to the dentist for the service which costs the insurance company $75 per month. This is an example of moral hazard. 8/ Effects of Health Insurance on Labor Markets Increasing the ratio of part time instructors to full time professors reflects one of many ways that universities attempt to reduce costs of its workforce. 9/ Adverse Selection and Moral Hazard Bill is an aging snowboard instructor at a local ski resort. All winter he takes over the counter pain medication to deal with his aching joints. Each summer he moves home with his parents and takes a part time job making minimum wage and qualifies for state government subsidized health insurance. This summer he plans to undergo arthroscopic surgery to repair his knee. Though this is an economically rational decision for Bill it represents a welfare loss to society as a whole. 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk 10/ Risk Aversion. Catastrophic medical expenses are large infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events. 11/ Methods for Covering Risk Medical cost may be paid by Medical cost may be paid by Medical cost may be paid by A. charity. B. all of the above. C. third party insurance companies. D. shifting consumption from one period to another. E. family or friends. A. charity. B. all of the above. C. third party insurance companies. D. shifting consumption from one period to another. E. family or friends. A. charity. B. all of the above. C. third


Order the answer to view it

Assignment Solutions


Assignment Solutions

ORDER THIS OR A SIMILAR PAPER AND GET 20% DICOUNT. USE CODE: GET2O