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Consider the basic Rothschild-Stiglitz model with asymmetric information and two types on consumers. A policymaker who has taken this class suggests that is might be beneficial to impose a flat tax on healthy people and distribute the tax revenue to sick people, providing partial insurance to people.
a. Since the tax will only offer partial insurance, there will still be a private competitive market for additional insurance. Will a separating equilibrium be possible in the insurance market if this tax is implemented? Draw a diagram to justify you answer.
After you view the film, One Flew Over the Cuckoo’s Nest, respond to the following two questions: 1. Labeling theory refers to the idea that deviance and conformity result not so much from what people do as from how others respond to those actions. D..
Do you think the U.S. Post Office should be protected from competition What about a pharmaceutical company that has just spent millions to develop a life-saving drug
Which he can trade at the going prices. He has no other source of income. Illustrate what is Nick's gross demand for x.
Suppose that a tariff is imposed on imports of minivans. Show graphically what the effect is in terms of price and quantity of imports. Be sure that your graph is completely and correctly labeled. What determines how much of the tariff is paid by the..
Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.
The game known as the Battle of the Bismarck Sea (named for that part of the south-western Pacific Ocean separating the Bismarck Archipelago from Papua-New Guinea) summarizes a well-known game actually played in a naval engagement between the United ..
Explain how do efficiency techniques differ in short- versus long-run when attempting to maximize profits. Illustrate what specific incentives are used in your workplace to promote efficiency.
Discuss advantages and disadvantages of both fixed and flexible exchange rate. Which of the two exchange rates regime would you recommend a country to implement? Give economic reasons for your recommendation.
A cooperative agreement among oligopolists is more likely to be maintained,
Purpose of the business in terms of the product or service you intend to provide through your business
q1. options traders appeared to be taking a bullish approach to target.illustrate what does a bullish approach mean?
The Chairwoman of the Federal Reserve has announced in her last conference that if the labor market continues to show signs of improvement they will continue with the tapering process and eventually the increase in the benchmark interest rate. How th..
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