Question

Question 6 (3p). Explain how social insurance can address uncertainty as well as risk.

Question 7 (3p). “Markets are self-regulating. Governments should not interfere” Discuss.

Question 8 (3p). The USA relies heavily on private insurance to finance health care. What are the resulting problems? Why are those problems entirely predictable?

Question 9 (3p). What problems arise in attempting to assess the social benefits of increased investment in school education?

Question 10 (3p). What are the characteristics of a good student loan scheme for tertiary education?

Answer 1

Social insurance may be a concept where the govt intervenes within the insurance market to make sure that a gaggle of people are insured or protected against the danger .

It is generally a form of compensation provided and controlled by a government for elderly, disable, or unemployed people. Social insurance programs is different from private insurance in many ways.

Contributions are normally compulsory and may be made by the insured’s employer and the state, as well as by the insured himself. Also, benefits aren't as strictly tied to contributions as privately insurance. For example, to form the programs serve certain social purposes, some groups are included among beneficiaries albeit they need not contributed for the specified periods of your time .

Social insurance helps account for the lack of predictability that individuals in the market have regarding their retirement, health and stability and thereby insures them against long term risks that they now no longer need to think about but are, for the most part, inevitable.

Medicaid, Medicare, and social welfare are all samples of social insurance programs within the U.S. . In this way, social insurance helps to reduce risk and uncertainity.