Instead of Deciding to Finish High School,you Could Have Decided

question 55

Multiple Choice

Instead of deciding to finish high school,you could have decided to work full-time.How would an economist explain your decision to receive your high school degree?

• A) The cost of going to high school was greater than the benefit of working full-time.
• B) The benefit of working full-time was greater than the benefit of going to high school.
• C) The benefit of going to high school was greater than the benefit of working full-time.
• D) The cost of working full-time was greater than the benefit of going to high school.
• E) The benefit of working full-time was greater than the cost of going to high school.

Distinguish between high risk and low risk clients and their treatment in the insurance market.

Explain the role of deductibles, co-payments, and classification in insurance pricing.

Analyze scenarios demonstrating adverse selection and its consequences in real-life contexts.

Understand screening and signaling as solutions to overcome adverse selection in insurance.

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Definitions:

Function

In the field of mathematics, a relation is a connection between a set of inputs and a possible set of outputs where every input corresponds to precisely one output.

Parabola

A symmetrical plane curve formed by the set of all points equidistant from a fixed point (focus) and a fixed straight line (directrix).

Upward

Directed or moving towards a higher place or position.

Downward

Describes the direction that is towards a lower position or level.