Programme Code : MEC
Course Code : MEC-001
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Year : 2013 Views: 798 Submitted By : NUTAN BARA On 18th March, 2013

Do you have solution for this Question. If yes    I aslo want solution.


Q1. What is meant by asymmetric information? In what way does the presence of asymmetric information lead to a

departure from the usual competitive equilibrium? Explain the relation among moral hazard, adverse selection and signaling, giving suitable examples.

Q2. What do you understand by actuarially fair insurance? Do you agree with the proposition that a risk-averse person will optimally buy full insurance if the insurance is actuarially fair? Give reasons in support of your answer.

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