1) How can changes over time of the average height of the people in a country he
ID: 1163999 • Letter: 1
Question
1) How can changes over time of the average height of the people in a country help to indicate the standard of living in a country? 2) What are the three main sources of health insurance in the United States? 3) Suppose a large firm allows its employees to choose whether to participate in its health insurance plan. The firm is trying to decide between two plans: Plan I has a low monthly premium but a high deductible, and Plan II has a high monthly premium but a low deductible. Under which plan is adverse selection likely to be a bigger problem, and why?Explanation / Answer
Ans
1 Greater the height greater the economic development (more probably) E. G average height in Japan has risen through economic development and resulting availability of better food
B They are private employer and govt(employer) Medicare, medic aid
C under 1st plan because plan 1 has low monthly premium and high risk individuals will be attracted to it. Note adverse selection occurs before transaction is entered into. (Moral hazard will be result of low deductible because it occurs after transaction is entered into) 100% right answer. Please like answer
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