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With the passage of the Affordable Care Act the U.S. government requires that everyone have some form of health insurance. One of the provisions of the law is that firms with more than 50 full-time workers must provide health insurance to those workers. What impact do you expect this policy will have on the following markets in terms of the wages and quantity of people employed in the short run? Note which curve shifts in each market, the direction of the wage, and the direction of quantity.
a. nurses
b. medical equipment
c. firms with right around 50 full-time employees.
Now, what do you think this policy will do to the overall price people pay for health insurance? Show this in a demand and supply model.
U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and illustrate what does it not tell us, about the well-being of U.S. residents
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Japanese GDP in 2010 was 480 trillion yen (U.S. GDP, again, was $14.5 trillion). The exchange rate in 2010 was 87.8 yen per dollar. Contrary to China and India, however, Japan had higher prices than the United States: the price level in Japan (conver..
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