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In an effort to reduce education expenditures, Delware shuts down two of the five colleges that train nurses.
a. Using the traditional supply and demand model, discuss the effects of the budget cut on three markets: the markets for nurse schooling (tuition and number of students), nurses (wages and employment), and the health services (prices and quantity). Use graphs if appropriate.
b. Suppose that in addition to the above scenario, average household incomes increased due to a rebound in the automotive industry. Describe how equilibrium prices and quantities in the health services market would compare to the situation prior to the combined budget cuts and increases in the automotive industry.
Assume that Erin now has preferences such that she prefers the cash gift. Using a separate graph from part (a), graph Erin's optimal choice before and after gift.
Contrast the role of fixed costs and variable costs in economic decisions about future production and pricing.
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What are the strength of the neoclassical models of labor supply and labor demand. What are the weakness of the neoclassical models of labor supply and labor demand.
Keeping all elsr constant their answer would likely differ. How do you guess the interviewed will answer? Does the diference in response matter?
Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in the society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social ..
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $20 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 4, and a budget deficit of $2 billion in year 5.
In the article on China holding $3 trillion in dollars, for every dollar it holds in reserves, it prints
Which method is more likely to be technically efficient. Illustrate what is the probability that she wins.
calculate velocity of money when price level is 10, national quantity of output is $200 billion and money supply is $250 billion Answer must be in detail Explain how Explain how you got answer.
Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. Try to read the entire article carefully first.. What challen..
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