Commercial Insurers Assert That Actuarial Fairness Requires Them to ____

question 2

Multiple Choice

Commercial insurers assert that actuarial fairness requires them to ____.

• A)closely review individual medical records
• B)spread risk across groups
• C)insure regardless of risk
• D)remain blind to individual health status

Understand the concept of consumption possibilities frontier.

Analyze trade opportunities and calculate potential trading ranges based on comparative advantage.

Define and calculate comparative advantage.

Define and calculate opportunity cost.

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Definitions:

Present Value

The present value of a future amount of money or series of cash flows, using a given rate of return.

Market Rate

The prevailing price or cost of products, services, or labor in a competitive marketplace as determined by supply and demand.

Interest

The cost of borrowing money, typically expressed as a percentage rate over a period of time, or the return on investment for savings.

ITQs

Individual Transferable Quotas, a common tool in fisheries management allowing holders to catch a specific percentage of the total allowable catch.