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(GDP Price Index)The health expenditure component of the GDP price index has been rising steadily. How might this index be biased by quality and substitution effects? Are there any substitutes for health care?
You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research AT&T spends $15 million on related paper work and compliance costs. Depending on the locale, telecom taxes ca..
Consider each of the following situations involving moral hazard. In each case identify the principal (uninformed party) and the agent (informed party) and explain why there is asymmetric information. How does the action described for each situati..
Economic Decision whether to stay out of town or spent the night. The town is 150 miles from my house which takes 2.5 hours of drive time. The hotel cost $119.00 per night. While I will have 5 hours my time value is $25.00 per hour of non-producti..
One of the most commonly used mathematical models for a demand function in micro-economics is x = Mp-k where p is the price of a commodity and x is the quantity of the commodity that can be sold. Suppose that M = 4, k = ½ p is the price per ride on..
Recognize the unemployment rate as an economic indicator for whirlpool, and describe why this indicator would be a good choice.
(a) How many people participate in the study (b) Calculate the Relative Frequency and enter the results in the above table. (c) Calculate the Midpoint for each class and enter the results in the above table. (d) Calculate the Cumulative Frequency and..
Now assume that returns from capital are taxed at the rate τ . Determine the asymptotic growth rate of consumption and output.
The Relationship between Unemployment and Inflation Rate,The Poverties in China, India and other Developing Countries
Suppose xt = (1:05)t and yt = (1:02)t. Calculate the growth rate of zt in each of the following cases: a) z = xy b) z = x=y c) z = y=x d) z = x^1/2 y^1/2
The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). The industry demand curve is given by: Qd = 998 - 5Pw + 4 Y - 6Pg
Does it depend on the size of the maximum? The shape/position of the indifference map? Are there circumstances in which the ceiling on available funds might have no effect on the mix of services provided?
An insurance company wants to estimate the mean score on this exam for students who have enrolled in a special study program. They take a sample of 8 students in this program and determine that their scores are: 2, 5, 8, 8, 7, 6, 5, and 7. This sa..
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