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Which of the following is not an example of moral hazard? a. A person only buys insurance after finding out that he or she is at high risk. b. A person is less careful about driving after purchasing collision insurance. c. An unemployed worker stays unemployed an extra week, collecting more unemployment insurance. d. A person only goes to the doctor after finding out that the visit will be covered by insurance.
The Rule of 70 applies in any growth rate application. Let’s say you have $1000 in savings and you have three alternatives for investing these funds.
The manager of a meat-packing plant can use either butchers (labor) or meat saws (capital) to prepare packages of sirloin steak. Based on estimates provided by an efficiency expert, the firm's production function for sirloin steak is given by Q=K+L. ..
"The role members of Congress serve in acting on behalf of the interests of the home constituents and nation regardless of whether constituents would immediately approve of the members' decisions" If you were a legislator and had to decide whether to..
Suppose the government imposes a price ceiling of $50 on a market characterized by the following information: Calculate the magnitude of deadweight loss from the price ceiling. Find a price floor that will result in the same magnitude of deadweight l..
The foregone value associated with the correct rather than the next best use of a given asset is called" a.) Opportunity cost b.) replacement cost c.) historical cost d.) currect cost What is the correct answer
What is brand loyalty? Name three products each for which you have (a) high brand loyalty and (b) low brand loyalty and explain why for each of the six products.
Let market demand be given by the inverse demand function P = 300-2Q, where Q = q1 +q2 +...+qn. The cost function for each firm in the industry is c(qi) = F +20qi+q 2 i . Firms are Cournot competitors. Find each firm’s equilibrium output and profit ..
Compute the CV and EV associated with this price increase. how would you interpret these.
Describes the market structures of oligopoly and monopoly in terms of number of producers, types of products produced, barriers to entry, and whether profit can be made in the short or long run. Also, be sure to note whether oligopolies and monopolie..
In each of the following situations, what type of unemployment is being described? Explain.
In recent years, the government of Pakistan has established a support price for wheat of about $0.24 per kilogram of wheat. At this price, consumers are willing to purchase 9 billion kilograms of wheat per year. What are annual consumer expenditures ..
Suppose that a store will sell 2000 boxes of bananas a week at a price of $12 per box. If the store raises its prices to $15 per box, it will sell 1500 boxes. What is the elasticity using the original formula? What is the elasticity using the midpoin..
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