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Describe the problem of “adverse selection” when health insurance is offered at a community rated premium? Define the term “community rated premium” as well. Is it possible to address the problem of adverse selection by increasing the premium level? Why? Describe two approaches that can be adopted by the insurance companies for reducing the severity of adverse selection problem.
Illustrate what is meant by the term "natural monopoly" and what are the key characteristics.
Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this. Illustrate what problems might it face in the future.
Determine its level of profit. (b) Suppose that a fixed costs increase to $75. Verify that this change in fixed costs does not affect the firm's optimal output.
Outline and describe in order of sequence the key items that led to the War of Independence. Explain why the navigation laws were so important to England. Explain the whys of the policy of salutary neglect.
If average income increases from US$5,000 to US$5,500 and if technological advances reduce cost of catching fish from US$2,500 per ton to US$2,000 per ton, by ExplainING how much will annual catch exceed maximum sustainable fish catch.
Explain how the market for corn would be affected if ethanol, a corn derivative, was used to fuel cars in the united States. How would the market be effected if new technology cause corn farming to be more efficient.
What happened to Ikonomia actir's net foreign assets during 2007. Did it acquire or lose foreign assets during year. Compute official settlements balance. Based on this number, what happened to central banks (foreign) reserves.
A company is producing 15,000 units. At this output level, marginal revenue is $22, and the marginal cost is $18. The firm sells each unit for $48 and average total cost is $40. What can we conclude from this information?
As a patient, write your recommendations to accept or decline at least three types of managed care plans. Which types are appropriate for which patients?
Do you agree with this statement? Could you make an argument that these markets are not competitive?
Illustrate what metrics would you propose to help in making the determination. Elucidate what historical data might be useful.
Suppose government now impose a tax, , on every unit of cheese produced. Graphically illustrate market after tax. Label tax revenues collected. Who bears more of burden.
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