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Medicare beneficiaries started to receive outpatient prescription drug benefits beginning in 2006, with the implementation of Medicare Part D. As a result, Medicare’s share of national prescription drug spending increased. Explain how the pharmaceutical companies would respond to this policy change in terms of their R&D activities. What is the economic term used to describe this phenomena?
A picture is worth a thousand words. We’ve heard that often but seldom consider the impact the visual media has on the written text. This is especially true in business messages and the projects you are working on creating for this course. As you des..
Wheat can only be sold at a central market place M. All producers that do not produce it at M need to haul it there in 11order to sell it and will incur transportation cost. Calculate the maximum distance to the east of M at which the good will be pr..
explain how changes in equilibrium occur as a result of changes in fiscal and monetary policy.
Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two goods, timber and televisions. Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two i..
What is the relationship between GPA and Job Selection? (inverse or direct) What are other factors that affect job selection?
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of #1200 after the machine's useful life of 8 years. On the other hand, leasing required an annual..
This question focuses on Pricing and exchange rates: On January 1, the U.S. dollar: Japanese yen exchange rate is $1 = ¥250. During the year, U.S. inflation is 4% and Japanese inflation is 2%. whose toughest competitor is Japan's Komatsu in the US ma..
How many people are unemployed according to the Burea of Labor Statistics? What is the unemployment rate according to the BLS?
No durable goods spending= $400million, durable goods spending = $300 million, new residential housing spending = $200 million, and spending on services = $500 million. What does consumption equal?
Consider the model of innovation and technology diffusion with two countries: Analyze graphically the effect of a reduction in the proportion of labour employed in the research sector in the follower country on the technology ratio and on the rate of..
What happens to consumer and producer surplus when the sale of good is taxed? How does the change in consumer and producer surplus comapare to the tax revenue? As a result of the above are taxes necessary to have? Explain.
Amalgamated Popcorn, Inc. is a fairly small firm selling bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, you have observed that your daily sales tend to follow a pattern that can be stated as: Compute the elasticity co..
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