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Government Mandated Insurance
Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies must offer insurance to everyone at unregulated rates.
(a) Why might this not help reduce the number of uninsured? Explain.
(b) An alternative strategy for reducing the number of uninsured might be to mandate that insurance companies charge individuals with health problems no more than individuals without health problems. Would this help reduce the number of uninsured? Explain.
What is the amount of loans from rest of the world? What is the current account balance? What is capital account balance?
Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
How much does the gross price increase in each market
Assume the airline industry consisted of only 2 firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Suppose the demand curve for industry is given by P = 100 - Q and that each firm expects the other to ..
Exchange and markets, Demand supply and market equilibrium
Suppose the ABC Corporation adopts a policy prohibiting its top-level executives, whose compensation packages-Use economic theory to analyze the incentive effects of this prohibition.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Why the price of computers dropped as their power and features has have increased?
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
Changes in government spending and interest rates
Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.
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