Assume the following group of 150 potential insured’s for health insurance:                             High risk group (50 potential insured’s)               Expected Annual Cost of Health Care Expenditures = $3600/insured                 Medium risk group (50 potential insured’s)               Expected Annual Cost of Health Care Expenditures = $2400/insured                 Low risk group (50 potential insured’s)               Expected Annual Cost of Health Care Expenditures = $1200/insured       Also assume that the insurer is unable to distinguish one class from another and yet the   insured’s have good information regarding their particular risk.   Provided that the pure premium charged is based on the expectation that all would participate, what problem would the insurer encounter if the insured’s are able to elect not to participate? Briefly explain.

The incidence of a tax:

What is one of the three reasons given in class why subrogation is included in the insurance contract?

Which of the following policies is MOST likely to reduce traffic congestion in a large metropolitan area because people usually exploit opportunities to make themselves better off?

iii. All buyers and sellers must display behavior, meaning they . Behavioral economics often studies decision-making that violates this condition.

First founded in Italian cities in the thirteenth century, _____________ allowed investors to pool their capital for trading ventures.

With experience rating, the higher the credibility factor

What two critical factors are impacted when water is not available in a facility? Why are these factors important to the operation of the organization’s information assets?

The _______________  of making a particular choice is what you must give up to get it.

The difference between the demand price and the supply price at the quota limit is: