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An article in the Economist magazine contains the following description of the "classic adverse selection spiral": "because [health insurance] premiums go higher, healthy people become even less likely to buy insurance, which drives premiums higher yet, and so on until the whole thing winks out. . . ." Why does an adverse selection spiral develop? What steps can insurance companies take to avoid it? Source: "Romney on Health Care: To Boldly Go Where He Had Already Been Before," Economist, May 13, 2011.
What is the present value of growth opportunities or P/E ratios the price is at a point in time while the earnings occur over a period of time. It is, therefore, necessary to specify whether the earnings are for the trailing twelve month period (T..
Assume that a hypothetical economy with an MPC of .7 is experiencing severe recession. By how much would government spending have to increase to shift the aggregate demand curve rightward by $30 billion?
The probability that a student takes Economics is 0.70. What is the probability that a student takes Psychology given that the student is taking Economics?
to increase its return a bank that expects interest rates to fall willawant the duration of its assets to be greater
Discuss the policies that Keynes and Hayek advocated regarding how the federal government should manage the economy and what are the major differences between each school of thought.
Discuss the pros and cons, for returning to the gold standard. Provide the positive and negative effects of reversing the current policy.
The relationship between the less- developed- countries and the developed countries in the evolution of international trade has always been a bit strained. Discuss this relationship, including policies adopted and /or advocated by each group to "help..
how does your analysis of value of marginal product vmp change if the employer is a monopolist producer of its output
When an economy enters expansion, the unemployment rate first increases and then decreases. Why does this happen?
Should governments force people to be in school? Why or why not?
A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (qi=20). The minimum average cost is $10 per..
What is the rate of return and which is the most desirable alternative based on a rate of return analysis,
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