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State regulation of insurance
Present one argument for and against the continuation of state regulation of insurance as well as one argument for and one argument against the federal regulation of insurance. How does the Appleton rule factor in your arguments?
Provide an example of how fiscal also monetary policies compliment or work against each other.
Consider a firm selling two different products at two different plants. The cost function for both plants is given by C (q 1 , q 2 ) = q 1 2 + αq 1 q 2 + q 2 2 .
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
What do you think branded products usually are of higher quality than generic products and therefore justify their higher prices.
Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.
Exp[lain how does banks use Covered interest arbitrage to protect themselves.
Elucidate what determines the rate of inflation when the economy is at long-run equilibrium.
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
Write down his budget constraint and a utility function that captures his preferences. Draw his budget constraint and three of his indifference curves.
For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity.
At the management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns". Is this statement correct? If so, why? If not, explain why no..
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