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The market for health care services can be examined using the tools of supply and demand. In this market, the quantity variable is hours of health care services. Consumers' demand health care services while doctors (or others) supply health care services. We will assume health care services are all of the same quality (so 1 hour of heath care service A is the same as 1 hour of health care service B). The market price is the price per hour of health care services (dollars per hour). Given this, suppose a law mandates that doctors cannot charge a price higher than Pmax, where this maximum price is set below the free market equilibrium price in this market. What will be the effect this law on the quantity demanded, quantity supplied and price paid for health care services? Who benefits and who loses from imposing this maximum price that sellers can charge/receive for health care services? (Note: given the price actually paid by consumers for health care must equate supply and demand. This price can include both monetary forms of payment and non-monetary forms of payment; in this example, what forms might such non-monetary payments take? That is, if health care must be "rationed" among consumers).
Economic growth has increased in the past few months in the United States and driven by a surging stock market and increased confidence in the global economy, Canadians have increased optimism about the future of economic growth.
In early 2001 investment spending sharply declined in the United States. In the 2 months following the September 11, 2001, attacks on the United States, consumption also declined. Use AD-AS analysis to show the two impacts on real GDP.
The Supreme Court Justices are appointed by the president and approved by the Senate. Now that we understand how the justices are elected, and the perks and downfalls to their undemocratic election, do you find it appropriate for the Supreme Court..
What is the expected rate of return on each stock if the market return is equally likely to be 5% or 20%? c. If the T-bill rate is 8%, and the market return is equally likely to be 5% or 20%, draw the SML for this economy. d. Plot the two securitie..
The functional finance approach to budget deficits would set the federal budget to promote an economy operating at potential output. What problems would you expect if the country were to employ this kind of budgetary philosophy
Alexander is willing to pay for such research. Vanessa's marginal private benefit from such research is given by the equation P= 100 -Q.The marginal social cost of engaging in such research is constant at $100. Reference: Ref 17-15
Explain the gap between developed and developing countries in terms of Income and wealth inequality. The authors explain that these three theories are useless to explain this gap.
Explain the difference between fixed production technology and variable technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology.
At present political campaigns, taxes and budget policy were key issues. White House budget packages are often created to stimulate economic growth.
A seller uses a second-price sealed-bid auction to sell a painting to two bidders. The seller claims that the painting was drawn by a famous painter, say Monet. Both bidders are not sure about the seller's claim
Canada's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate the effective rate of protection for Canada's steel industry. e=(n-ab)/(1-a)
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
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