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Title: economics

Essay Details:

Subject: Business
Author: Angelina S
Date: April 29, 2011
Level: University
Grade: A
Length: 1 / 255

Essay text:

Adverse selection and moral hazard Are the examples below adverse selection or moral hazard? Explain. (a) Those with a history of diseases are more likely to purchase health insurance policies. (b) Those with health insurance take care of themselves less carefully. IV. List and explain three primary functions of money. IV. Compute the PDV of getting $150,000 per year for the next five years, with the first payment received one year from today, the second payment two years from today, and so on. Assume that the interest rate is 5 percent. [HINT: recall that if we can compute the PDV of one payment, we can compute the PDV of a stream of payments by computing the PDV of each payment separately, then summing]...

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