please answer the below two questions.
Unemployment Insurance. Each worker employed by Risky Business has a 25 percent chance of losing his or her job in the next year. Each worker employed by Safe Business has a 2 percent chance of losing his or her job. You manage an insurance company that provides a lump sum of $10,000 to each unemployed worker a. The minimum amount you would charge Risky Business for each employee covered by the unemployment policy is $(Enter your response as an integer) b. The minimum amount you would charge Sate Business for each employee covered by the unemployment policy is $(Enter your response as an integer) C. Suppose you charge the same premium to both businesses. The companies have the same number of workers and are required to purchase unemployment insurance. The minimum amount you would charge is $(Enter your response as an integer) Suppose that in the French compound of a POW camp, the price of cheese is 8 cigarettes per cheese ration and the price of tea is 4 cigarettes per tea ration. In the British compound, the price of tea is 24 cigarettes per ration Is there an opportunity for beneficial exchange? A French prisoner could exchange his cheese ration for cigarettes, then exchange the extra cigarettes for tea rations in the French compound. If he travels to the British compound, he could exchange the extra tea for cigarettes. When he returns to the French compound, he can exchange the extra cigarettes for cheese rations. In other words, his net gain from trade is cheese rations. Exchange in an Island Economy. Robin and Terry are stranded on a deserted island and consume two products, coconuts and fish. In a Robin can catch 2 fish or gather 8 coconuts, and Terry can catch 1 fish or gather 1 coconut. Fish Robin Coconuts 8 Terry Coconuts 1 Output per day Fish 1 2 has a comparative advantage fishing, and has a comparative advantage gathering coconuts. Suppose that each person is initially self-sufficient. In a six-day week, Robin produces and consumes 32 coconuts and 4 fish, and Terry produces and consumes 4 coconuts and 2 fish Now suppose Robin and Terry engage in specialization and exchange, trading 3 coconuts for 1 fish. If Robin and Terry consume the same number of fish as in the self-sufficient outcome, then specialization and exchange allow Robin to consume additional coconuts (enter your response as an integer) and Terry to consume additional coconuts (enter your response as an integer). Coffee and Cheese Exchange in a POW Camp. Suppose that in the British compound of a prisoner of war (POW) camp, the price of cheese is 24 cigarettes per cheese ration and the price of coffee beans is 3 cigarettes per coffee ration. In the French compound, the price of coffee beans is 30 cigarettes per ration. a. Is there an opportunity for beneficial exchange? (Enter all values below as integer values.) b. A British prisoner could exchange his cheese ration for cigarettes, then exchange the cigarettes for coffee rations in the British compound. If he travels to the French compound, he could exchange the coffee for cigarettes. When he returns to the British compound, he can exchange the cigarettes for cheese rations. In other words, his net gain from trade is cheese rations. L2
