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Susan used to work for a large corporation where the premium for employment-based group health insurance was $500 per month. Of this, she contributed $100 and her employer contributed the remaining $400. When she left this job, her new employer did not offer group health insurance. She discovered than purchasing an equivalent quality individual health insurance plan would cost her a monthly premium of $800. Explain why there was such a difference in the premiums. (Assume this was before passage of the Affordable Care Act)
Many years ago, the traditional mortgage loan structure specified:
Consider current on-demand digital media delivery trends, such as Apple TV, Netflix, and Hulu. Choose one company. Based on the material covered this week in the lectures and textbook, do you believe that this company has a viable revenue model? Why ..
q1. many small boats are made of fiberglass that is derived from crude oil. suppose that the price of oil rises.a.
Conclude by choosing a position for or against ethnicity-based jury nullification and defend your decision.
A company currently pays a dividend of $2 per share (D=$2). It is estimated that the company’s dividend will grow at a rate of 20% per year for t the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, the r..
Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. If these economists ignore the possibility of crowding out, they would estimate the marginal propensity t..
Economists assume that profit-maximizing firms operate in perfectly competitive markets. However, this assumption does not hold in today's global market, as there are many reasons why markets are not perfectly competitive. How do market demand, costs..
Consider a monopolistic firm that can produce any quantity of its product at a constant marginal cost equal to $20,000 and a fixed cost of $10 billion. Its products could be sold in two different markets: Europe and U.S.. What quantity should the fir..
Les argues that the 10 year note is a better risk free rate at 2%. He also argues that the stock market is too high and the expected return is really only 5%. Assume that he is correct. The company has a beta of 1.6. What is the cost of equity?
Kenyan economics expert James Shikwati says the aid to Africa does more harm than good. He is an avid proponent of globalization and argues that Western development policy in Africa is disastrous. Why would Shikwati be opposed to foreign aid in suppo..
Construct a representative indifference curve for each of the following situations. (Note: Even though some of the goods described exist only in discrete quantities, draw the IC assuming the goods exist in continuous quantities). The two goods are wa..
The main drawback of the Herfindahl-Hirschman Index (HHI) is that:
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