21 Jul WHY MIGHT IT BE DIFFICULT FOR A BUYER AND SELLER TO AGREE ON A PRICE WHEN IMPERFECT INFORMATION EXISTS?
1.why might it be Show more Principles of economic: economic and the economy by tim taylor (3rd ed) Chapter 18 1.Why might it be difficult for a buyer and seller to agree on a price when imperfect information exists? 3. What are some of the ways a seller of goods might reassure a possible buyer who is faced with imperfect information? 5.what are some of the ways that someone looking for a loan might reassure a bank that is faced with imperfect information about whether the loan will be repaid? 7.In an insurance system would you expect each person to receive in benefits pretty much what they pay premiums? or it it just that the average benefits paid will equal the average premiums paid? 9. What is the problem of moral hazard? 11. Define deductibles copayments and coinsurance. 13. What is the key difference between a fee-for-service health care system and a system based on health maintenance organizations? 15.How might adverse selection make it difficult for an insurance market to operate? Show less
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