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Read the article by David Cutler
Should healthy people have to pay for chronic illnesses_ - The Washington Post.html
A. Explain what the author means when he says that "In this mode of thinking, the unraveling of risk pools is a virtue, not a vice." (third paragraph). Do you agree with this statement? why or why not? Note: unraveling means coming apart.
B. It has often been argued that men should not have to buy insurance that covers maternity benefits since they cannot get pregnant. If this were to happen for the state insurance exchanges (where individuals and families can buy their own insurance directly from an insurance company), explain how this would affect premiums for men and women and the number who would buy insurance. What might be the longer term effects of this policy?
C. Explain what the author means when he says "the healthy are not allowed to free-ride if they happen to need care, or to avoid the cost of the less fortunate." (11th paragraph) Do you agree or disagree?
With higher fuel costs, airlines raise their average fare from $0.50 to $1.50 per passenger mile and the number of passenger miles decreases from 2.5 million a day to 1.5 million a day.
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A researcher estimated that the price elasticity of demand for automobiles in the United States is -1.2, while the income elasticity of demand is 3.0. Next year, U.S. if sales of domestically produced automobiles do expect U.S auto makers to sell nex..
The Dodd-Frank Act modified the regulation of bank and savings institutions by:
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Each year, the country’s 700-plus business schools produce a total of 80,000 MBAs. The number of business schools has more than doubled and the number of MBA graduates per year has increased 15 fold since 1970 with a growing demand for MBA graduates ..
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You decided to purchase a new hummer for 60,000. If the dealer offers a $5000 rebate, what would your monthly payments be if your interest rate is 6.5% and you pay it off in 4 years?
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The classical model cannot explain periods of prolonged unemployment. B) The Keynesian model cannot explain periods of prolonged unemployment. All the following are assumptions of the classical model EXCEPT.
Assuming you have a capital budgeting problem with 6 investment options, what is the maximum number of investment combinations you would have to test? Calculate. Show work
A bottling company uses two inputs to produced bottles of the soft drink Sludge: bottling machines (K) and and workers (L). The isoquants have the usual smooth shape. The machines cost $1000 per day to run (r), and the workers earn $200 per day (w).
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