1. deductible A) the costs to individuals of making a deal 2. environmental cens
ID: 1130014 • Letter: 1
Question
1. deductible A) the costs to individuals of making a deal 2. environmental censes to emit limited quantities of pollutants that can be bought and sold by polluters standards 3. risk neutral 4" moral hazard 5. risk averse 6. transaction costs 7. positive C) when individuals will choose to reduce the risk they face when the reduction leaves the expected value of their income or wealth unchanged - D) this states that even in the presence of extermalities an economy can always reach an efficient solution given transaction costs are sufficiently low E) a tax that depends on the amount of pollution a firm produces F) rules that protect the environment by specifying actions by producers and consumers externalities 8. G) a sum that the insured individual must pay before being compensated for a claim events 9. adverse H) occurs when an individual knows more about their actions than other people do, leading to a distortion of incentives to take care or 10. tradeable emissions exert effort when someone else bears the costs of the lack of care or permits B 11. Coase theorem 12. emissions tax 13. diversification 14. negative effort r) also known as external costs J) also known as external benefits K) when an event is neither more or less likely to occur based on the occurrence of another event L) a payment to an insurance company in return for the insurance company's promise to pay for the claim in certain states of the world externality, 15. premium M) this is a description that applies when a person is completely insensitive to risk N) this occurs when an individual invests in several different things so that possible losses are independent events O) occurs when an individual knows more about the way things are than other people doExplanation / Answer
1. deductible - L
2. Environmental standards - F
3. Risk neutral - M
4. Moral hazard - H
5. risk averse - C
6. Transaction cost - A
7. Positive externality - J
8. independent events - K
9. Adverse selection - O
10. Tradable permits - B
11. Coase theorem - D
12. Emission taxes - E
13. Diversification - N
14. Negative externality - I
15. Premium - G
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.