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Perfectly competitive markets are considered by economists to be effcient. Therefore government should let those markets run freely without intervention. The provisions of health care insurance, however, are mostly regulated by government in most developed countries.
(a) What assumption(s) of the perfect competition model that the health care insurance market does not satisfy?
(b) What is the key informational problem in this market?
(c) How do most countries resolve the problem?
In a situation of a fixed exchange rate, explain why, in the monetary approach, an excess supply of money leads to a balance-of-payments deficit. Why is the deficit only temporary? How might advocates of the monetary approach explain a long-lasting d..
Arian is about to borrow $2350 from his uncle. He has an option to repay the loan at the end of year 5 with 10.75% simple interest per year or with 5% interest per year, compounded annually. What is the difference of the total interest paid over 5 ye..
In the long-run, if prices of all resources remain unchanged, when a firm doubles all resources the quantity of output more than doubles, the firm is experiences. The term fiscal policy refers to
Demand-pull inflation occurs when:
these cuts are not discriminate theory, re is nothing EU can or should do about m. So why are some old EU members so upset about East European taxes.
Define what a phoneme is. Explain the difference between a phone and phoneme. Then explain what a minimal pair is. Explain the purpose of identifying a minimal pair. Provide an example in English, or another language, of a minimal pair. Select one no..
emphasize why the need for instrumental variables arises and how authors have approached the problem. make sure to
Assume the hospital is a monopolist with a demand function given by p = 404−2x, where p is the price of hospital care and x is the quantity of hospital care. Assume that the hospital’s cost function is given by C = 300+4x+8x 2 , where C is total cost..
A lump-sum tax causes the after-tax consumption schedule to be flatter than the before-tax consumption schedule
Illustrate what is the marginal cost of a string. Calculate marginal revenue and marginal cost for each quantity.
You are tasked with manufacturing 12 commercial aircraft per month. A new OSHA rule requires that welders be given paid 2 hour break for every 2 hours of work to prevent carpel tunnel syndrome. Using the isoquant-isocost graph as an aid, explain what..
Determine the profit maximizing output and amount of profits for the firm. If the market demand increases to Q(d) = 57 - 4P, determine the new profit maximizing output and profits.
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