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According to the Centers for Medicare and Medicaid Services (CMS) the cost of health care increases by approximately 4% each year, exceeding $3 trillion in 2012. What societal changes have affected the cost of health care? How has the government responded to contain and reduce health care spending? What role should government play in controlling the cost of care and ensuring health coverage?
The next two questions refer to the following problem. A risk-neutral worker can provide high effort (at personal cost $14) or low effort (at zero cost). A high effort worker contributes $X to the company’s revenues, a low effort worker contributes $..
Examine the services that are provided by investment banks. Determine the importance of these services to their clients. Support your answer with an example.
Suppose that individuals in this economy invest 30% (use .30 in the graph) of what they produce; the labor force in this economy grows at 5% (use .05) per year; and 10% (use .1) of the capital stock wears out each year. Suppose that the capital labor..
what are the characteristics of monopolistic competition. graph the long run profit position for the monoplistically competitive firm. what is excess capacity and how is it manifested in the monoplistically competitive firm's graph.
Under perfect competition firms take prices as given. In that case, and under constant returns to scale, firms make 0 profits in equilibrium. Show that this is true for the Cobb Douglas production function, when firms rent capital from households at ..
An outside firm can make components according to the cost function TC=1m + 10Q. Suppose it typically produces 10m units. What is this firm’s cost per unit? Suppose that your firm is able to buy components at this cost per unit. If you order 1m units ..
Why, in a model with no production but two periods does an increase in current taxes (without a concurrent change in government spending) not a?ect consumption? How would the model likely change in terms of consumption and interest rates?
Write a two- to three-page paper (600 words minimum) examining perfect competition in the value-menu fast-food restaurant business. Address the following questions in your paper: What are the characteristics of perfect competition? Why does this type..
Suppose it takes 4 hours of labor time to hang sheetrock in a room and 2 hours to tape and plaster a wall. If one person spent an entire 8 hour day hanging sheetrock, In how many rooms could sheetrock be hung? Illustrate with a production-possibiliti..
What are the limits to U.S. long-term economic growth? Is there anything that our government can do to address these limits, or would it be a bad idea to try?
Describe the factors that influence wage setting. Write down the equation that represents wage setting, describe the effect of each factor in the equation/function, and draw the corresponding diagram. Clearly state the assumptions behind your analysi..
Illustrate the effect of capital formatin by comparing the production possibility curves, at the present time and ten years in the future, for two economies, one with a high and the other with a low rate of capital formation.
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