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Because health insurance tends inevitably to cause moral hazard, will the population necessarily be over insured (in the sense that a reduction in insurance would improve welfare)? Are there beneficial factors that balance against the costs of welfare loss?
How much would you be willing to pay for this security if his market interest rate is 6%? Suppose that you have just purchased the security, and suddenly the market interest rate falls to 5%. What is the security worth?
The United States simultaneously limits imports of ethanol for fuel purposes also provides incentives for the utilize of ethanol in gasoline which raise the price of ethanol by about 15 percent.
Illustrate what is the key assumption of the basic Keynsian model? Explain why this assumption is needed if one is to accept the view that aggregate spending is a driving force behind short-term economic fluctuations.
Consider the following model of demand for insurance (identical to that studied in class). Risk-averse individuals maximize expected utility of wealth where wealth is random due to a loss L, that occurs with probability π. It is assumed that insuranc..
Suppose re are 300 of young in some period t. n, how many good are paid to government for tax in this period. In period t, how many good can each old person get and consume.
A simplified representation of the real world that has the ability to predict or provide explanations for what really happens is known as a(n) ______________ of behavior.
The currency-deposit ratio has been and is likely to remain relatively stable. The ratio of non-transactions deposits to transactions deposits increased by a factor.
The expected salvage value of the furniture is $5,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period.
Subsequent forecasts were derived by using exponential smoothing with a smoothing constant of 0.25 using this exponential smoothing method, what is forecast for Whopper sandwich demand for Friday.
Illustrate what do you think would occur when there is little or no competition is a marketplace
q1. classify the equilibrium price.what would happen if suppliers charge less than the equilibrium price for your good
Describe, in details how a perfectly competitive industry determines the price and quantity. Also, explain the role of /te firm in this market regarding price and quantity determination. Show your answers utilizing a graph for the market as well as t..
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