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Over the past decade medical costs have increased more rapidly than other prices. In order to illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity of other goods. Furthermore, let income (M) be measured in hundreds of dollars, the price of medical services and other goods in terms of dollars per minute, with M=100 ,Px = 4 , and Py =5
a. Graph the budget line, and determine the market rate of substitution. b. Explain and illustrate the budget line and opportunity set. c. Show in your graph what happens to the budget constraint if increases to $10. d. What is the meaning of the slope of the two budget constraints?
Determine the balance at the end of year 5 if a new account is opened with $500 and periodic payments of $200 are deposited into it for the 5 years. The account has a 5% NAR with the following conditions.
An insurer sold 100,000 policies at $6,800 and paid for all care. Ten percent of its customers were high risk ($50,000 in annual spending) and 90 percent were low risk ($500 in annual spending). What are its revenues and medical costs?
Consider the Romer model of labor supply. Specifically, an individual who seeks to maximize. Argue that if W and P both increase proportionately the optimal choice of how much to work does not change. What would happen to optimal labor supply if W we..
If oligopolists compete hard against each other.
The state of Delaware issued a 8.75% bond with a face value of $1000 bond sales for $1000 and provide to 8.75% U2 maturity what-year-old on a corporate bond would result in both Bonds providing the same after tax rate of return to an investor in a 30..
In solving an arithmetic gradient problem with the gradient decreasing, which is true? Use the highest amount as the base. Calculate uniform series with that base amount, and then subtract the calculated gradient (wedge).
When the incidence analysis of a tax increase incorporates the assumption of an offsetting decrease in another tax, we call the analysis
Select a multinational firm of your choice and describe its corporate-level and business unit-level strategies. Support your answer with relevant data.
Referring to expanse on of intra-industry trade and provide critical evaluation (benefits and costs) of FDI incentives on production structure and on development of a host country in Asia in terms of employment and income generation. Comment on the r..
An individual purchases quantities a, b, and c of three different commodities whose prices are p, q, and r, respectively. The consumer spends m dollars, where m > 2p, and the utility function is given by Show that the optimal expenditure on the secon..
Can anyone recommend some free software for students studying economics for use in senior projects, theses, or dissertations? What kind of economic freeware exists for economics students?
A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a
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