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How does adverse selection affect the health insurance market? Do you think the Affordable Care Act adequately addresses adverse selection?
Draw diagram in each case and explain answer: 1) the economy experiences a period of rapid growth, with rising corporate profits 2) The federal government imposes a tax of $10 per bond on bond sales and bond purchases.
Increasing marginal volume for cost payers makes economic sense if:
Suppose you have hired a new worker, unfortunately you do not know if the worker is a shirker or a hard worker. Suppose working hard raises the probability of making a sale from 40% to 80% (thus raises the probability of making a commission C by the ..
Emotional branding is becoming an important way to connect with customers and create differentiation from competitors. How can companies create emotional branding to position their brands? What are some examples of companies (other than from the text..
Based on the Immigration lecture and the lessons on immigration in this unit, explain the costs and benefits of immigration. What other costs or benefits to immigration would you add to this list? What are some immigration policies that you agree wit..
How would you define the geographic and product markets of large healthcare organizations such as Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and John Hopkins? What are the barriers for new competitors to enter those markets?
The last recession ended in the middle of 2009. Since the end of the recession, has fiscal policy been a success? Why or why not?
Consider the market for personal computers. Suppose that the demand is stable: the demand curve doesn't change. Predict the effects of the following changes on the equilibrium price of computers. a. The cost of memory chips (one component of a com..
Between 1979 and 1981, the Federal Reserve sharply increased its target for the Federal Funds interest rate. This move was followed by an increase in the unemployment rate. To achieve an increase in the interest rate target, would the Federal Reserve..
a finn purchased some equipment at a price of $30000, the resulted in an annual net saving of $1000 per year during the 8 year period. at the end of the 8th year, the equipment was sold for $40000. assuming interest of 8%. did the equipment purcha..
Currently in the US there is a demographic trend that has caused dramatic increases in the number of students attending universities. The children of Baby Boomers have grown up and are ready for college.
Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppo..
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