Consider a Market for Health Insurance with 1,000 Potential Buyers

question 123

Multiple Choice

Consider a market for health insurance with 1,000 potential buyers. The insurance company knows that half of the potential buyers are of poor health and will cost the insurance company $50,000 annually, while the other half are of good health and will cost the insurance company $10,000 annually. However, the insurance company does not know which individual people are of poor health or good health. The potential buyers know whether they are of poor health or good health. If the insurance company sets the price of the insurance policy at $30,000, _____ people will purchase insurance, and the average per-person cost incurred by the insurance company will be _____.

• A)500; $40,000
• B)1,000; $10,000
• C)1,000; $30,000
• D)500; $50,000

Identify the subject of a sentence in various contexts.

Recognize examples of synonyms and negations that help define a subject.

Understand the concept of netiquette and its importance in online communication.

Identify examples of charisma and understand how it is defined through personal qualities and effects on others.

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Definitions:

Feeding Intolerance

Difficulty in digesting food without adverse effects, often seen in infants and those with digestive system disorders.

Intravenous

Pertaining to the administration of substances directly into a vein.

RhIG

Rh immunoglobulin, a blood product given to prevent Rh incompatibility reactions between a pregnant Rh-negative woman and her Rh-positive fetus.

Rh-negative

A blood type that lacks the Rh antigen on the surface of red blood cells, important in blood transfusions and pregnancy.