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Insurance companies must provide insurance to drivers who may take risks that go unreported because they don’t wreck or get ticketed (or if they do wreck or get ticketed, it goes unreported to the insurance company). Briefly explain the principal-agent problem and moral hazard in economic terms.
You estimate that the price elasticity of demand for clinic visits is ?0.25. You anticipate that a major insurer will increase the copayment from $20 to $25. This insurer covers 40,000 of your patients, and those patients average 2.5 visits per ye..
What is the equilibrium price and quantity. Illustrate what will sales be if the price is dropped to $20.
An increase in the aggregate demand for goods and services will result in an increase in the amount of output firms are willing to produce, and this increase in output will be accompanied by: a. a decrease in the inflation rate.The long-run aggrega..
Measured as the long-term growth of potential GDP, how has economic growth in the United States changed over the decades since 1962? There was a slowdown in growth-when was it and what is it called?What is the difference between real GDP and nominal ..
Draw a graph showing how output evolves over time, and explain what happens to the level and growth rate of per capita income and explain what happens to the economy over time and in the long run.
The United States is one of the worlds, weathiest countries. Think of a recent case in which the dicisions of the U.S. governement were severely consrained by scarcity. Describe the trade-offs that were involved. What were the opportunity costs of..
identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do the same for each of the determinants of supply in Equation. In each instance, would equilibrium market price increas..
I am borrowing $255,920.00 which is the total amount of the home ($319,900.00) minus $63,980.00. i am trying to figure out what my monthly payment on the loan which willneed to be paid back in 25 years at 6.5%.
Suppose that you are a government official in charge of your country's fiscal policy. The country maintains a flexible exchange rate system. You are asked by your country's citizens to use fiscal policy alone to expand the country's..
Does this change in the value of the dollar make imports cheaper or more expensive for Americans? Are American exports cheaper or more expensive for importers of U.S. goods in Japan? Illustrate by showing the price of a U.S. e-reader in Japan, before..
Explain how the aggregate expenditure function and the aggregate demand curve would shift when there is a decrease in the nominal money supply by the Federal Reserve.
Suppose the number of points on an economics midterm (P) can be characterized by the following procution function: P=5H-4B; where H is the number of hours spent studying for the exam and B is the number of beers consumed the week before the exam.
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