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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, provi ding partial insurance to people.
After the tax is implemented a recession hits and a new policymaker decides to make up for a tax revenue shortfall by expanding the tax to include sick people as well as healthy people. Will a separating equilibrium be possible in the insurance market under this policy?
Do you agree or disagree with people and companies voluntarily sacrificing personal liberties for the sake of preventing and resolving cyberattacks. Explain your response.
The Cost of a Flower Business. Jen left a job paying $60,000 per year to start her own florist shop in a building she owns. The market value of the building is $80,000. She pays $40,000 per year for flowers and other supplies
Do you know which states have the highest unemployment rate right now? As businesses are downsizing in the recession, they are laying off a lot of people. What type of unemployment will then occur?
Indentify one group that would benefit from deflation and that would lose. explain why each group would gain or lose from deflation.
Why do you suppose that some publishers are selling space for advertisements in their e-books-and sometimes even in physical books? From an economic standpoint, how could we explain the willingness of someone to pay $19.99 for a physical book that is..
Suppose the Stimulus package (The American Recovery and Reinvestment ACT of 2009) for $787 was allocated for spending in all 3 components of the AE model of Keynesian Macro model (RGDP = C+I+G); where they spent the bulk of it in G (government expens..
In a socialist economic system, people are free to choose an occupation of their choice, but many people work in ___ jobs.
Illustrate what fiscal policies also monetary policies would be appropriate at this time. You must use at least one article. Use references also APA.
Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of th..
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
If average income increases from US$5,000 to US$5,500 and if technological advances reduce cost of catching fish from US$2,500 per ton to US$2,000 per ton, by ExplainING how much will annual catch exceed maximum sustainable fish catch.
If you favor FedEx, probe the disparity between operational and financial standards of excellence. If you favor UPS, reconcile your view with the conventional wisdom about FedEx’s operational excellence.
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