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A group of American doctors have called for a limit on the number of foreign-trained physicians per- mitted to practice in the United States. What effect would such a limit have on the equilibrium quantity and price of doctors' services in the United States? How are American-trained doctors and consumers affected? (Hint: See Solved Problem 2.4.)
Evaluate the range of marginal revenues
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection. b. Discuss a few tactics that managers can use to overcome these problems.
Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.
derive Karls demand curve for beer as a function of exogenous variables (ie income, prices) hint draw his indifferece curves and budget constraint and think about what must be true at his optimal bundle.
Val Hawkins borrowed $15,000 at a 14% yearly rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end-of-year payments.
If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)
Define a preliminary scope statement for a project to build a simple interactive website for this class. The website should be accessible only by current students and instructors.
If the U.S. were to move to a different health care system, which do you think would be the best model to follow -- Canada, Germany, or the U.K.? Explain why
Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to .075. Assuming that Ricardian equivalence holds true, what is the effect on equilibrium real GDP On saving
Beef supplies are sharply reduced because of drought in the beef-raising states, and consumers turn to pork as a substitute for beef. How would you illustrate this change in the beef-market in supply-and-demand terms?
In the coordination failure model, suppose that consumers preferences shift so that they want to consume less leisure and more consumption goods. Determine the effect on aggregate variables in the good equilibrium and the bad equilibrium.
Assume all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on the size of the federal deficit.
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