Across
- 1. Adverse actions taken by individuals or producers in response to insurance against adverse outcomes
- 5. The ratio of unemployment insurance benefits to pre-unemployment earnings.
- 7. Programs in which eligibility depends on the level of one’s current income or assets.
- 8. The difference in information that is available to sellers and to purchasers in a market.
- 10. The amount that risk-averse individuals will pay for insurance above and beyond the actuarially fair price
- 12. The private means of smoothing consumption over adverse events, such as through one’s own savings, labor supply of family members, or borrowing from friends.
- 15. Government interventions in the provision of insurance against adverse events
- 20. If a higher level of education makes a person a more productive worker, then society can benefit from education in terms of the higher standard of living that comes with increased productivity
- 21. Programs to educate disabled children
- 23. Charging a price for insurance that is a function of realized outcomes
- 24. A market equilibrium in which different types of people buy different kinds of insurance products designed to reveal their true types.
- 25. The fact that insured individuals know more about their risk level than does the insurer might cause those most likely to have the adverse outcome to select insurance, leading insurers to lose money i
- 26. Money that is paid to an insurer so that an individual will be insured against adverse events
- 27. whereby low-income people have a chance to raise their incomes
- 28. Schools financed with public funds that are not usually under the direct supervision of local school boards or subject to all state regulations for schools
Down
- 2. A person’s stock of skills, which may be increased by further education
- 3. The extent to which individuals are willing to bear risk.
- 4. Loans taken directly from the Department of Education
- 6. Loans taken from private banks for which the banks are guaranteed repayment by the government
- 9. Credit The failure of the credit market to make loans that would raise total social surplus by financing productive education.
- 11. A fixed amount of money given by the government to families with school-age children
- 13. The translation of consumption from periods when consumption is high, and thus has low marginal utility, to periods when consumption is low, and thus has high marginal utility.
- 14. The set of outcomes that are possible in an uncertain future.
- 16. Insurance premium that is set equal to the insurer’s expected payout.
- 17. A market equilibrium in which all types of people buy full insurance even though it is not fairly priced to all individuals.
- 18. The benefits that accrue to society when students get more schooling or when they get schooling from a higher-quality environment.
- 19. The weighted sum of utilities across states of the world, where the weights are the probabilities of each state occurring
- 22. A federal program that taxes workers to provide income support to the elderly.
- 24. A model that suggests that education provides only a means of separating high- from low-ability individuals and does not actually improve skills.