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Consider the basic Rothschild-Stiglitz model with asymmetric information and two types on consumers. A policymaker who has taken this class suggests that is might be beneficial to impose a flat tax on healthy people and distribute the tax revenue to sick people, providing partial insurance to people.
a. Since the tax will only offer partial insurance, there will still be a private competitive market for additional insurance. Will a separating equilibrium be possible in the insurance market if this tax is implemented? Draw a diagram to justify you answer.
Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.
Can you come up with any examples of either adverse selection or moral hazard affecting you or someone you know in their family life, love life, or job? (Here’s one to get started on: Is an obnoxious guy or an interesting guy more likely to start a c..
Examine KANO Analysis of customer requirements also come up with some questions (also answers) concerning it.
Consider a market structure where there is a monopoly in input market (upstream monopolist) and also there is a monopoly in product market (downstream monopoly). If each firm maximizes its profit then there is double mark up. Show that if these two f..
Why is the demand curve for a monopolist downward sloping, while the demand curve for the perfectly competitive firm is horizontal?
Non-enforcement of occupant loads have been at root of several large loss fires in past including Cocoanut Grove fire. Why is enforcement of this aspect of egress design so important. Examples from your own experience.
q1. illustrate what are the effects on the price level p also the nominal interest rate i whenever a credible
Congresswoman Gaga represents a state in which several firms fabricate furniture. She needs to impose tariffs on all imported furniture.
Illustrate what price should you charge in order to maximize revenues from the sales of the Highlander. Please put this into Excel so I can see the formulas/calculations.
The company you work for recently has committed itself to implementing a program of social responsibility. After the company has gotten the commitment of top executives, planned the program, and appointed a program director, you suggest that a (n) __..
The EU recently admitted the Eastern European countries. How do you assess the impact of the EU's expansion? What are the costs and benefits of the expansion for the U.S. economy?
What firms need to do in order to bring in the most talented people and make the fullest possible use of their abilities.
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