Economics Answers

If there are 50 people in insurance pool. based on their age, the company estimated the following distribution of healthcare claims
No. of insured Anticipated health cost/year/person
5 $3300
5 $4000
5 $7000
5 $10000
If there is one common premium for those in the insurance pool what would it be? with no profit added here, what will be the average cost.

If the equilibrium price for an average hospital stay with no insurance is $5,000. At that price, 1000 people are hospitalized each year. Now suppose an insurer offers a policy to lower the out of pocket price of a stay to $100, and at that price, 1200 people are hospitalized
a.How much TOTAL premium revenue must be collected to finance this arrangement?
b.How much premium revenue per hospitalized person must be collected? Would the average person be willing to pay this premium if they were risk averse?

1. List four possible reasons for an appreciation of rand against the us dollar.
2. Explain how changes in exchange rates can influence exports and imports?

1. Who would benefit and who would lose if south african government doubled the tariff on imported frozen chicken leg quarters from brazil?explain.
2. Use examples to explain the difference between absolute advantage and comparative (or relative) advantage in international trade.

What international trade is and why countries should trade?

the aggregation of what happens at micro economic level is what what constitute macro economy would it be possible for what happen to macro level to differ from how an agent would react to some stimuli at micro level ?

Aria is planning to travel to a country where there is some risk of contracting malaria. The market price for the medication that prevents malaria is $400 (the preventative medicine is not covered by insurance). It would take her 2 hours to visit her doctor and get the prescription filled. The opportunity cost of her time is $50/ hour.

If she contracts malaria we assume that she will be sick for two weeks and unable to work. Expenses for medication, doctors’ visits, and lab tests to treat the malaria will be $1500. She will lose wages and benefits of $1000 for each week she is away from work. Assume the cost of the pain and suffering is $2000.

Aria believes that her chance of getting malaria without preventative medicine is about one in 10.

What is the maximum price that Aria would pay if insurance covered the full cost of treatment if she got malaria?

In 2013, 1000 patients were seen with a healthcare service with an average price of $50. this year, the company will pay half of the price. The demand for service is inelastic with elasticity coefficient of 0.8 between price $25 and $50. how many patients will take the service? explain by calculating percentage change in price to the patient

what is Measure of Value, Medium of exchange and store value?

Mary is planning to travel to a country where there is some risk of contracting malaria. The market price for the medication that prevents malaria is $400 (the preventative medicine is not covered by insurance). It would take her 2 hours to visit her doctor and get the prescription filled. The opportunity cost of her time is $50/ hour.
If she contracts malaria we assume that she will be sick for two weeks and unable to work. Expenses for medication, doctors’ visits, and lab tests to treat malaria will be $1500. She will lose wages and benefits of $1000 for each week she is away from work. Assume the cost of the pain and suffering is $2000.
Mary believes that her chance of getting malaria without preventative medicine is about one in 10.
A.Would it be logical for her to buy the medication? Why or why not? Be specific.
B.What is the maximum price that Mary would pay for the medication if she has no insurance?