ear-old male smoker, about 50 pounds overweight, who has high blood s to excess
ID: 2439549 • Letter: E
Question
ear-old male smoker, about 50 pounds overweight, who has high blood s to excess a couple of times each month. Because of adverse selection in John is less likely to buy health insurance than the average person, because the John is more likely to buy health insurance than the average person, because his 9 John is a Johar and drinks health insurance a- average person's policy premiums will be based on his risk, not the average risk b. policy premiums will be based on the average risk, not his personal risk. when John gets health insurance, he will be less likely to take care of himself. when John gets health insurance, he will be more likely to take care of himself. if John doesn't have health insurance already, he will not be able to get it. d e. 10. Many business professionals constantly monitor their incoming e-mail and text messages so they can appear to be alert and responsive, even at night and on weekends. Alternatively, some time management consultants recommend that business professionals should not constantly check for new messages because this practice distracts the worker from scheduled tasks that may have higher priority. The decision to messages less frequently may not harm the worker's salary if it is a check e-mail or text a. b. c. d. weak signal of worker ability. weak signal of cell phone strength. strong signal of worker ability. strong signal of ease of distraction. 11. In insurance markets, moral hazard creates economic inefficiency because a. insurance companies are price setters rather than price takers. b. insurance products are not homogenous goods. c. there are many buyers but only a few sellers. d. insured individuals do not correctly perceive the costs or benefits of their actions the effort levels of workens. evel Suppose new electronic devices make it easier to monitor some shirking is still possible in the efficiency wage model, what happens to the l employment? 12. b. It increases, and the labour market reaches full employment c. It decreases a. It increases, but some unemployment remains. d. It does not change.Explanation / Answer
9. Correct ans is option b. Adverse selection refers to a situation where buyers have some additional information that sellers do not have, or vice versa. Here John has more information about his health that insurance company dont have. So the company will ask for the premium which normal health person has to pay because the company dont know about John's health issues. In this case John is more likely to buy the health insurance than the average person.
10. Correct answer is option c. Beacuse if it is a weak signal of worker ability or cause of distraction, then it will harm the worker's salary. Only when this decision to check texts less frequently is a strong signal of worker ability, then it will not harm the worker's salary.
11. Correct answer is option d. Moral hazard means lack of incentives to take measures against any risk because one is already protected from its consequences. So here, due to moral hazard the insured individual do not perceive the correct costs or benefits of their actions.
12. Sorry, not answering this question as some part of question is missing in image. Though that seems less relevant but still there are chances that just a word could change the question and hene answer too.
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