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A major employer has just added health insurance coverage for its employees. Consequently, 5,000 of your patients will pay a $30 copayment rather than the list price of $100 per visit. These patients average 2.2 visits per year. You believe the price elasticity of demand is between 0.15 and 0.35. What is your forecast of the change in the number of visits?
Every summer, tickets are sold for a high demand event, tickets are distributed on a first-come-first-served basis at 1pm on the day of the show, but people begin lining up before dawn. Most of the people in the lines appear to be students.
For each of the following production functions, state and show whether it is Constant/Increasing/or Decreasing Returns to Scale: [Hint: to show Constant/Increasing/or Decreasing Returns to Scale, see how production changes when all inputs incr..
list and briefly describe the three primary tools the fed has to control the money supply and how all three can
Briefly discuss the concept of both positive and negative externalities and give specific examples of each. In your explanations of the two, cover the differences, discuss why property rights are an important variable, and discuss any other releva..
A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..
Would you give an example of a microeconomic decision you have made at work or home? What factors contributed to making that decision? Example:
Presume that in the absence of trade, the U.S. price for bicycles was higher than the world price for bicycles. Would allow international trade, mean that the U.S. would import or export bicycles? Who in the U.S. would benefit and who would lose with..
Compute the actual dollar annual worth of Machine B. Use an inflation-free MARR of 14 percent, an inflation rate of 6.5 percent per year, and a study period of 10 years.
a. explain the concept of the multiplier and explain the role of the marginal propensity to consume in determining the
Why are common borders and cultural similarities often an additional factor to determine who trades most with whom and why? Use your knowledge of the gravity model to justify your answer through two suitable examples.
Suppose the number of employed people in an economy is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725.
What is meant by stagflation. What economic circumstances might lead to a period of stagflation. In terms of the AD/AS model and/or the Phillips curve model, explain what is necessary to end a period of stagflation.
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