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Imagine a community with only one insurance company that provides coverage to everyone in that community (a universal/single pay or insurer). Currently, the payer does not pay anything for physician office visits. However, bowing to intense lobbying pressure, insurance will pay 80% of the cost of these visits effective January 1, while the patients will be responsible for 20%. Describe the likely effect on demand curves for office visits to a physician as a result. What are intended and unintended consequences and what do you suppose will be the intended and unintended consequences will be?
Imagine you are a member of Congress. Since consumer spending comprises at least 2/3 of real GDP, you know that increasing that spending would boost the U.S. economy in the short run. During a press conference, a member of the press asks you what you..
Explain why trash collection on campus is provided by the University, instead of by individual students and faculty members.
Compute the expected return on portfoliob) compute the standard deviation of the returns on the portfolio assuming that the two stocks returns are perfectly positively correlatedc) compute the standard deviation of the returns on the portfolio assumi..
How does the concept of sentience impact moral reasoning about the rights of the animals? In response define sentience and give at least three examples of how this compact impacts ethical decisions about animals.
All licensed drivers are required by law to purchase a minimum level of auto and motorcycle insurance (well, if they own either of the two). However, the vast majority choose to buy much more insurance than the required minimum. It’s also true that m..
Joe and Mary can each produce salads and smoothies. He can make 6 smoothies per hour or 30 salads per hour. She can make 30 smoothies per hour or 30 salads per hour. Make a graph with salads per hour on the vertical axis and smoothies per hour on the..
When a industry's marginal revenue product equals the income rate, marginal revenue also equals marginal cost.
If a $24 per share stock has a P/E ratio of 20 and pays out 40% of its profits in dividends, how large is its dividends? Also what is the implied rate of return?
For the range of prices that you are planning to charge, own price elasticity of demand is believed to be -1.5. Calculate the optimal (profit maximizing) price that you should charge. Show all calculations.
Suppose that inflation is 2 percent, the Federal funds rate is 4 percent, and real GDP falls 2 percent below potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real Federal funds rate?
In the last few years, your company made a concerted effort to improve its minority hiring, so many of the new employees are minorities. How should you decide who to lay off?
Identify some ways that nursing homes can signal high quality to consumers. Which of these signals are most apt to be reliable? What are some strategies for reducing adverse selection in insurance markets? What sorts of problems do these solutions ca..
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