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Problem 1:
Health insurance leads to health promotion. Using diagrams, describe the impact of health insurance on the demand for health care.
(a) Distinguish between negative and positive externalities? Justify your answer using examples.
(b) To what extent do government policies corrects for both externalities?
Problem 2:
(a) Using diagram, describe the impact of:
(i) Wage floor in the labour market.
(ii) Rent ceiling in the market for apartment.
(b) Describe the economic impact of taxes.
(c) Using the demand for cigarettes determine the effectiveness of a tax levy.
Change in consumer income: A change in consumer income may bring about a change in the quantity demanded of a good or service. However, the direction of change in quantity deman
Some Cost Considerations for Managers * Three guidelines for estimating the marginal cost(MC): 1) Average variable cost should not be used as substitute for the marginal cost(
Identify path of growth and development to economic maturity.
sequential game
remedies of unemployment
Draw a Production Possibilities Frontier with consumer goods on the vertical axis and capital goods on the horizontal axis. Show how the PPF will shift if the production of capita
Government Production: Some production in the economy is undertaken directly by governments (or several kinds of government agencies) in order to meet public requirements (as disti
Why is it considered well to bring all BOP's to zero? If BOP of any country is zero, it reflects that the present account of that country has sufficient balance to meet the n
Wage Differentials: Market structure alone does not account for all of the differences in wages and employment. Market wage differentials arise from various other sources, includin
equilibrium price and output.
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