Suppose someone knew that the probability of incurring a $10,000 medical expense was 5% and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500) with the $500 premium it would cost to get full coverage and decided to buy the insurance but only if the price went no higher then economists would say they are
A) irrational.
B) risk loving.
C) risk averse.
D) risk neutral.
Correct Answer:
Verified
Q15: A deductible is the
A)percentage of a covered
Q16: The government spends _ of all health
Q17: Government spending accounts for _ the private
Q18: Which Federal Government program(s)pay(s)for the health needs
Q19: Suppose someone knew that the probability of
Q21: If the deductible is $500 and the
Q22: Fee-for-service insurance
A)is typically less expensive than an
Q23: If the deductible is $200 and the
Q24: If the deductible is $400 and the
Q25: HMO insurance
A)is less expensive than fee-for-service insurance.
B)has
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