ECON 200 UOFA ACTUAL FINAL Newest 2025 Complete
Questions And Correct Answers (Verified Answers) |Already
Graded A+||Brand New!!University of Arizona
There is a town with exactly a. $1,600
1,000 residents. b. Unhealthy residents
In the town, 75% of the
residents make
The health insurance provider can offer only one price. If
healthy choices and 25% of
it tries to cover the costs of both the unhealthy and the
the residents consistently
healthy individuals, its costs on average will be (0.75 ×
make unhealthy choices,
600) + (0.25 × 1,600) = $850. Because healthy
but the health insurance
individuals are only willing to pay up to
company in town $800, healthy individuals would not purchase this insurance. Only
cannot tell who is healthy and unhealthy
who is individuals would purchase insurance. In this case, the
unhealthy. A healthy person
insurance provider needs to cover the costs of the
has an average of $600 in
unhealthy individuals, which are $1,600. Thus, insurance
medical expenses each year
will cost at least $1,600.
and is willing to pay $800
for insurance. An
unhealthy person has an
average of $1,600 in
medical expenses each
year and is
willing to pay $2,000 for
insurance. The health
insurance provider can
offer
insurance at only one price.
a. In equilibrium, the price of
insurance will be at least
b. Inequilibrium, who will buy
insurance?
,**In which of the following Government raises taxes to pay for social services
government policies is moral
hazard not a concern?
When people do not face a. moral hazard
the full consequences of b. drivers with insurance may drive less carefully.
their actions, they may act in
riskier ways than they
would otherwise.
a. This situation is called:
moral
hazard.
adverse
selection.
market
failure.
imperfect competition.
b. An example of this problem
is:
buyers cannot determine
the value of a stock before
purchase.
people in poor health are
more likely to buy
insurance.
drivers with insurance may
drive less carefully.
only low-quality cars will be
available on the market.
,Say whether each of the a. signaling
following b. screening
situations involves screening c. screening
or signaling.
d. signaling
a. Auto shops and motels
advertise that they are
AAA-approved:
b. Employers check
interviewees' Facebook or
LinkedIn profiles before
hiring one of them:
c. Applicants must pass an
exam before becoming
eligible for a civil-service
position:
d. People wear expensive
clothing with large brand
names or logos:
, Jane uses an online dating a. screening
service. For b. signaling
each of the following activities c. signaling
say whether Jane is screening d. screening
or signaling.
a. Janeviews profiles of only
non-smokers:
b. Jane describes her
volunteer activities in her
profile:
c. Jane lists museums and
foreign films among her
interests:
d. Jane looks for matches
who live within 25 miles of
her address:
In college admissions, a and c are checked
which of the following b and d are unchecked
are examples of
statistical
discrimination?
a. A college has minimum
required scores on
standardized tests.
b. A college is an all-women's
school.
c. A college uses high
school GPA to rank
students for scholarship
offers.
d. A college requires
three letters of
recommendation.
Questions And Correct Answers (Verified Answers) |Already
Graded A+||Brand New!!University of Arizona
There is a town with exactly a. $1,600
1,000 residents. b. Unhealthy residents
In the town, 75% of the
residents make
The health insurance provider can offer only one price. If
healthy choices and 25% of
it tries to cover the costs of both the unhealthy and the
the residents consistently
healthy individuals, its costs on average will be (0.75 ×
make unhealthy choices,
600) + (0.25 × 1,600) = $850. Because healthy
but the health insurance
individuals are only willing to pay up to
company in town $800, healthy individuals would not purchase this insurance. Only
cannot tell who is healthy and unhealthy
who is individuals would purchase insurance. In this case, the
unhealthy. A healthy person
insurance provider needs to cover the costs of the
has an average of $600 in
unhealthy individuals, which are $1,600. Thus, insurance
medical expenses each year
will cost at least $1,600.
and is willing to pay $800
for insurance. An
unhealthy person has an
average of $1,600 in
medical expenses each
year and is
willing to pay $2,000 for
insurance. The health
insurance provider can
offer
insurance at only one price.
a. In equilibrium, the price of
insurance will be at least
b. Inequilibrium, who will buy
insurance?
,**In which of the following Government raises taxes to pay for social services
government policies is moral
hazard not a concern?
When people do not face a. moral hazard
the full consequences of b. drivers with insurance may drive less carefully.
their actions, they may act in
riskier ways than they
would otherwise.
a. This situation is called:
moral
hazard.
adverse
selection.
market
failure.
imperfect competition.
b. An example of this problem
is:
buyers cannot determine
the value of a stock before
purchase.
people in poor health are
more likely to buy
insurance.
drivers with insurance may
drive less carefully.
only low-quality cars will be
available on the market.
,Say whether each of the a. signaling
following b. screening
situations involves screening c. screening
or signaling.
d. signaling
a. Auto shops and motels
advertise that they are
AAA-approved:
b. Employers check
interviewees' Facebook or
LinkedIn profiles before
hiring one of them:
c. Applicants must pass an
exam before becoming
eligible for a civil-service
position:
d. People wear expensive
clothing with large brand
names or logos:
, Jane uses an online dating a. screening
service. For b. signaling
each of the following activities c. signaling
say whether Jane is screening d. screening
or signaling.
a. Janeviews profiles of only
non-smokers:
b. Jane describes her
volunteer activities in her
profile:
c. Jane lists museums and
foreign films among her
interests:
d. Jane looks for matches
who live within 25 miles of
her address:
In college admissions, a and c are checked
which of the following b and d are unchecked
are examples of
statistical
discrimination?
a. A college has minimum
required scores on
standardized tests.
b. A college is an all-women's
school.
c. A college uses high
school GPA to rank
students for scholarship
offers.
d. A college requires
three letters of
recommendation.
