According the 2001 CSO Mortality Table,the Yearly Probability of Dying

question 5

Multiple Choice

According the 2001 CSO mortality table,the yearly probability of dying for a 40 year-old man is .00165.The present value of $1 one year from today,assuming a 5.5 percent interest rate,is .9479.What is the net single premium per $1,000 for a one-year term insurance policy sold to a man at age 40 assuming a 5.5 percent interest rate? Assume the premium is paid at the start of the year and the death benefit is paid at the end of the year.

• A)$1.56
• B)$2.45
• C)$7.18
• D)$952.81

Distinguish between movements along the demand/supply curve and shifts in the demand/supply curve.

Understand the economic impacts of seasonal changes on supply and demand.

Evaluate the effects of external shocks (natural disasters, technological advancements) on market dynamics.

Understand how changes in supply and demand affect market equilibrium prices and quantities.

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Definitions:

Supply Price

The minimum price at which a producer is willing to sell a particular quantity of a good or service.

Price Ceiling

A legal maximum price that can be charged for a good or service.

Producer Surplus

The differentiation between the amount at which producers are content to sell a good or service and their actual revenue.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable through market means, often due to market failures or intervention.