The expected annual medical expenses of a high-risk person is $3000 per year while that of a low-risk person is $1000 per year.
The expected annual medical expenses of a high-risk person will be calculated as:
= Probability of falling ill × Expenses in case of illness
= 30% × $10000
= 0.3 × $10000
= $3000
The expected annual medical expenses of a low-risk person will be calculated as:
= Probability of falling ill × Expenses in case of illness
= 10% × $10000
= 0.1 × $10000
= $1000
It should be noted that in a situation where the individuals are risk neutral, the low-risk persons will not buy insurance as only the high-risk individuals will be expected to buy<em> insurance.</em>
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Answer: sinking fund
Explanation: In simple words, it refers to the method under which then organisation set aside a fund for the repayment of this debt over the years.
Under this method, the organisation is setting aside 10 percent every year so that there will be no heavy load on the organisation at the end of the tenure.
Hence from the above we can conclude that the given case depicts sinking fund.
Answer:
a) It will accrue revenue through time. As in November 6th it has the obligation to keep the downhill ski open or return the cash
cash 405 debit
unearned reveue 405 credit
--to record sales of season pass--
unearned revenue 81 debit
service revenue 81 credit
--year-end adjustment for accrued revenue--
Income statetent
service revenue 81
Balance sheet
Liaiblities
unearned revneue 324
Explanation:
We must recognize revneue following the acounting pricniples of conservatisim and matching when the time at they occur.
405 is the cost for 5 months (Dec 1st to April 30th)
so 405 / 5 = 81 cost per month
At decmeber 31th we recognize 1 month
ANd this will be the value included in the income statement
C. 4 hours to grow enough cells to cause illness.
Answer:
Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour force (the total number of people employed added to those unemployed).[4]
Unemployment can have many sources, such as the following:
new technologies and inventions
the status of the economy, which can be influenced by a recession
competition caused by globalization and international trade
policies of the government
regulation and market
Unemployment and the status of the economy can be influenced by a country through, for example, fiscal policy. Furthermore, the monetary authority of a country, such as the central bank, can influence the availability and cost for money through its monetary policy.
In addition to theories of unemployment, a few categorisations of unemployment are used for more precisely modelling the effects of unemployment within the economic system. Some of the main types of unemployment include structural unemployment, frictional unemployment, cyclical unemployment, involuntary unemployment and classical unemployment. Structural unemployment focuses on foundational problems in the economy and inefficiencies inherent in labor markets, including a mismatch between the supply and demand of laborers with necessary skill sets. Structural arguments emphasize causes and solutions related to disruptive technologies and globalization. Discussions of frictional unemployment focus on voluntary decisions to work based on individuals' valuation of their own work and how that compares to current wage rates added to the time and effort required to find a job. Causes and solutions for frictional unemployment often address job entry threshold and wage rates.
