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Economists often assume that insurers set premiums (nearly) equal to the AFP for that plan. Is that an accurate assumption? Is a higher “load” on insurance premiums necessarily a bad thing for consumers? When might a higher load be a sign of problems in the insurance market?
Perfect and imperfect multicollinearity: Define perfect multicollinearity either mathematically or explain it intuitively. Explain how imperfect multicollinearity differs from perfect multicollinearity (you may, but don’t have to, use examples).
Agricultural price supports increase consumer surplus. Agricultural price supports decrease producer surplus. Agricultural price supports benefit taxpayers by reducing the price of food.
What is the main reason why a tiger is near extinction but chickens are nowhere near extinction? When a negative externality is present in a market. When we say the cost of production is $50, what is meant according to economic principles? Consumers ..
q.consider once again the microchip market. demand for microprocessors is given by p 35 - 5q. where q is the quantity
Sheila budgets $9 per week for her morning coffee with milk. She likes it only if it is prepared with 4 parts of coffee and 1 part milk.
Why should John and Karl live together. If they do, will there be dirty dishes in the sink. Explain
Suppose that a country has a fixed exchange rate and unrestricted (financial) capital flows. Which of the following would the country NOT experience?
A firm has two factories, one twice as large as the second. As the number of workers at each factory increases. Illustrate which factory will experience diminishing returns first.
Consider a production technology that takes three inputs: capital (K), labor (N ), and materials (M ). The production function is given by Y = AKαNβ Mγ , where α, β, γ > 0 and α + β + γ = 1. For this production function,
How to use Solow growth model to explain the long run effect of raising the saving rate on capital per worker ad output per worker. Start with an initial steady state and show the new steady state on the graph. Label the graph properly.
The best test of the performance of two different regression equations is their respective values of the coefficient of determinations. Equations that perform well in explaining past data are likely to generate accurate forecasts.
Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for hours and spend A dollars advertising, your benefit (the amount you revive when you sell your car) is B(H,A)=220H-H^2+2A. Both H and A ar..
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