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State independence with insurance refers to
a. policyholder being better off healthy than sick in terms of income
b. policyholder being better off sick than healthy In terms of income
c. policyholder being worse off sick than healthy In terms of income
d. Policyholder will enjoy the same income level whether he gets sick or not
Define carefully what is meant by a demand schedule or curve. State the law of downward-sloping demand. Illustrate the law of downward-sloping demand with two cases from you own experience.
Elucidate why a currency appreciation does not improve a nation's balance of trade.
Why would it be valuable for a business to know cross elasticity of demand for two products it produces: peanuts and popcorn.
You are in charge of a large firm, Drexanto, which has developed a new variety of corn for farmers that is highly resistant to disease and bugs. What is the marginal product of skilled labor hours? What is the marginal product of water?
All other things being equal, by how much will nominal GDP expand if the central bank increases the money supply by $100 billion, and the velocity of money is 3? Suppose now that economists expect the velocity of money to increase by 50% as a result ..
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
Global studios are thinking of producing a mega film, Aqua world, which could be a mega hit or a mega flop.
Describe what is meant by a dominant strategy. Given payoff matrix above, does each firm have a dominant strategy. Under what circumstances would re be no dominant strategy for one or both firms.
Let P be the price of a stock. The investor wants to purchase Q units of this stock. Suppose investor’s equity is E and assume that equity is strictly smaller than the value of the stock investor wants to purchase. As such, the investor receives a lo..
The City of Phoenix plans to buy five additional mass transit cars for $15 million, and pay off its loan in 10 years. What would the annual percentage rate be if the city plans to make an interest payment of $2 million?
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
Does the lender gain or lose from this unexpectedly high inflation. Explain does borrower gain or lose.
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