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1. What question is the RAND health insurance experiment designed to answer?
2. What are the two most important findings of the RAND study?
3. What is the flaw in the previous studies in the literature that the RAND study was trying to address?
4. What is the price elasticity of demand for medical care according to the RAND study?
Suppose the supply curve for Budweiser is given by Qs = 73 + 5P and the demand curve is defined. What is the equilibrium quantity and price for a bottle of Budweiser? When the market price of Budweiser is $2, is the market in equilibrium / shortage/ ..
Elucidate why an upward sloping aggregate supply curve is thought to weaken the impact of a rightward shift of the aggregate demand curve generated by an increase in government spending in the short run.
Suppose the media reports that the federal deficit this year is $200 billion. The national debt was $5,000 billion last year, and it is $5,200 billion this year. The price level this year is 3 percent higher than it was last year. The real deficit is..
A pure competitive star industry consists of a large number of independent firms producing a standardized product A. determines the average cost function? Define the profit function for the company that is at an equilibrium position if we know,that t..
Changes in the macroenvironment affect individual firms and industry through the microeconomic factors of demand, production, cost and profitability.
If workers enroll in a savings plan and are asked to check a box to opt out of it, we are seeing an example of a nudge involving:
Describe the mechanism that leads from a change in fiscal policy to changes in interest rates, the exchange rate, and the current account balance. Do the same for monetary policy.
(a) What is the expected PW for deciding whether to proceed? (b) Find the P(loss) and the standard deviation for proceeding.
You were recently hired to replace the manager of the Roller Division at a major conveyor-manufacturing firm, despite the manager’s strong external sales record. Roller manufacturing is relatively simple requiring only labor and a machine that cuts a..
Calculate consumption expenditures as a percent of real GDP for all years and calculate GDP growth in 2011 and 2012.
According to an article that discusses the climate for software firms in the San Francisco Bay Area, the success of Instagram “is a tale about the culture of the Bay Area tech scene, driven by a tightly woven web of entrepreneurs and investors who nu..
A firm's cost-reduction strategies may span multiple stages, from acquisition of production input factors to product service and maintenance. When seeking to lower cost in the short term, firms should
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