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The affordable care act madates that everyone buy health insurance or face a penalty. This policy is likely to mitigate the adverse selection problem in health insurance markets, but its likely to add to the moral hazard problem of insurance markets. Why?
Describe the effects a 15 percent price increase would have on the demand for the product.
Anybody Coal Corporation expects tough economic situations for foreseeable future. Their current beta is 1.2, the risk free rate is 10 percent and the required rate of return on the market is 15 percent.
If gross investment is not large enough to replace capital that depreciates in particular year, is net investment greater or less than zero? What happens to our production possibilities?
The demand for a shake at a Juice Shop can be described by the equation: Q=1000-240P+80N, where Q denotes the number of shakes sold every day,
people are not very responsive to the price changes of this product and the absolute change in quantity demanded is less than the absolute change in price. people are not very responsive to the price changes of this product and the magnitude of th..
The economy is initially in long-run equilibrium. The AD curve shifts to the right and the price level rises. Assuming that the economy is self-regulating, the SRAS curve will shift to the left and the price level will rise even further.
In most developing countries, there are long lines of taxis at airports, and these taxis often wait two or three hours. Illustrate what does this tell you about the price in the market. Carefully Explain with supply and demand analysis.
Illustrate what appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy.
Associate a current event article which relates to government regulations or antitrust activities.
Evaluate the following statement: "I am a manager in a governmental agency. I have no control over compensation policy. All workers are paid the same salary (everyone is paid according to a set schedule and their remuneration cannot be adjusted by..
Philips Industries produces a certain product that can be sold directly to retail outlets or to the Superior firm for further processing and eventual sale as a completely different product.
A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are: MPL = 20 MPM = 4 Is the firm m..
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