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One reason why employees prefer for their employer to pay for their health insurance rather than receive increased wages and pay for their own health insurance is that wages are taxable income to the employees but the money the employer spends to buy health insurance for the employees is not taxable. What is the other main reason why employees prefer to have the employer pay for their health insurance?
Medical Supplies B Us (MSBU), Inc. is trying to weigh the pros and cons with respect to planned investment. The following scenarios may increase or decrease planned investment. Help MSBU, Inc. to examine each scenario to see if it immediately impacts..
Suppose that two firms compete simultaneously in quantities. The inverse demand function is given by P = 12 - Q where Q = Q1 + Q2 is the sum of the quantities produced by firms 1 and 2 respectively. Assume also that these firms have NO COSTS. If firm..
What is the definition of "First Best", "Second Best", etc. in contract theory? Especially, what is the difference between "First Best" in contract theory and "ex-post efficient" in mechanism design?
Home (H) and Foreign (F) produce autos and shirts using capital (K) and labor (L). Draw a PPF-Budget Constraint-Indifference Curve diagram for each country that shows the autarky (no-trade) equilibrium, indicate what the country is producing and cons..
She is now considering raising her prices by 20 percent to offset the increase in her monthly rent.
The Federal Reserve has an obligation to keep prices stable while promoting full employment (a.k.a. the dual mandate). Watch the video and comment. To ensure originality of responses, you are welcome and encouraged to utilize outside sources to help ..
The Asian Disease Problem: Imagine that the United States is preparing for an outbreak of an unusual Asian disease that is expected to kill 600 people. Two alternative programs to combat the disease have been proposed. Demonstrate mathematically the ..
Elucidate how did the invention of crack cocaine transform the urban street gang.
Which of the following are the ideal conditions for a laissez-faire economy?
Assuming that labor is the only variable input, why does the marginal cost curve slope upward? Marginal cost may decrease at low levels of output, but we assume that it eventually begins to increase, and continues to increase as output increases. Why..
Which of the following refers to business cycles?
What is the marginal cost per bushel of apples produced? If the market price of a bushel of apples is $5.50, and is unaffected by the farmer’s production decision, then the marginal revenue of a bushel of apples is $5.50. In that case, how many bushe..
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