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George and Nancy had a $30,000 repair bill on their home after the tornado went through town. Their policy contained the usual 80% co-insurance clause. Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 deductible.
How much insurance should they have carried to meet the coinsurance obligation?What percentage of this loss will the insurance company pay?How much of the loss will George and Nancy have to absorb?
Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of prod..
Explain why do some economists argue that reduction in the rate of taxation and capital gains can actually increase tax revenue collected from such gains.
Assume you flipped an honest coin 10 times and heads came up 8 times.
Important information about Regression anaylsis. Compute the equilibrium price and quantity.
Before the merger, each of the separate newspapers was losing about 10 million per year. what forecast would you make for the merged firms profits.
Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have the firm's AFC (average fixed cost), AVC (average variable cost), ATC (average tota..
Describe how the equilibrium in a labor market with a monoposony employer changes if a minimum wage is set at the competitive level.
Assume the United States government is planning changes in economic and social policy to decrease wage inequality.
It offers all the amenities and benefits of a tight-knit small community, with the benefits of living close to the big city. Some years pass, and several children and adults in the community start developing extensive and similar illnesses.
A firm can seek any combination of quality and price it chooses. Thus, it can go with a low quality-low price strategy or use one which combines high quality with a high price. Ideally, of course a high quality and a LOW price will be the most pow..
Calculation problems should be proven by showing the process you used or the formula you applied to solve the problem.
Elucidate whether demand for that products and/or services is relatively price elastic or relatively price inelastic and explain why.
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