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Consider the following aggregate economic data regarding all the health care goods and services in a given country: Tylenol X-ray Physical therapy Year Price Aggregate expenditures Price Aggregate expenditures Price Aggregate expenditures 2010 3 60 100 1,000 10 500 2011 4 80 40 2,000 70 1,750 2012 5 75 45 3,375 75 900 Assume that the typical basket of goods for an average consumer contains one X-ray, two sessions of physical therapy, and three packs of Tylenol. a. For each of these three health care goods and services, is the increase in aggregate expenditures over time due to higher prices or higher utilization or a combination of the two? Show your work. b. Compute the CPI for all three years using 2010 as the base year. Show your work. c. What is the inflation rate between 2010 and 2011? Between 2010 and 2012? Between 2011 and 2012? Show your work. d. Explain one of the potential problems with using a simple Laspeyres index to measure medical inflation.
In the Castorian Airline market there are only two firms. Each firm is deciding whether to offer a frequent flyer program.
Which he can trade at the going prices. He has no other source of income. Illustrate what is Nick's gross demand for x.
HOW can different investment vehicles affect the risk and returns of the pension fund? What are the pros and cons of using international investment vehicles, real estate, and alternative asset vehicles in a pension investment portfolio?
Which of the follow is a characteristic of a command system?
The widget Industry in Any town is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given.
Brian has grown tired of paying rent each month to his landlord and has decided to purchase a condo. Brian has been saving money and has $51025.00 that he will use as a down payment on this condo. He will take out a mortgage to pay the remaining pric..
Explain the key features and innovations of Progesa/ Oportunidades Program regarding human capital? Even though the program has been successful in Mexico, Explain why a similar program might not work elsewhere.
Which of one of the following is an disadvantage of multiple choice questions? How can descriptive statistics be defined. Which measure of varibility describes the average deviation of each score from the mean
In Overdressed, Cline makes many arguments about the state of the fashion industry, globalization, and society. Cline states, “The [fashion]-industry is really globalized at this point. So, it is hard for a union to come up with a strategy that would..
In the early 1970s, the six largest manufacturers of ready-to-eat breakfast cereals shared 95 percent of the market. Over the proceeding 20 years, these manufacturers introduced over 80 new varieties of cereals. How would you evaluate this strategy f..
Explain the important determinants of the Working Capital needs of a firm. Can two firms with different Working Capital achieve the same amount of sales? If so, explain how.
Suppose that inverse demand is given by D(Q) = 56 − 2Q, Q = q1 + q2 and the cost function is TC(qi ) = 20qi + f (a) Find the limit output for fixed costs ( f ) equal to 50, 32, 18, and 2. (b) What is the SPNE for the entry game with the following tim..
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