How do HSAs encompass demand side cost-control mechanisms? How do they include supply side cost control mechanisms?
When the price of a good increases the quantity consumed will fall. The amount by which consumption falls however, depends on the both the substitution and income effects of a price change. Use an indifference curve/budget line diagram to explain this statement. Make sure you include a definition of all key terms in your answer.
--------- 1. Suppose that Natash'a utility function is given by U(I)= Sq. Root of I where U represents utility and I represents annual income in thousands of dollars. A) Is natasha risk loving, risk neutral, risk averse? B) Suppose that Natasha is currently earning an income of 10,000, and can earn that inco
Subject: patents Details: . So why do governments issue patents at all? Explain, showing the contrast between the average and marginal cost curves for a firm with very high fixed costs and low marginal costs, and those assumed for the ?standard? textbook firm. What might one predict would happen to the rate of innovation if th
Graduate level step-by-step solution with explanation 1. A couple plans to purchase a home for $250,000. Property taxes are expected to be $1,900 per year while insurance premiums are estimated to be $700 per year. Annual repair and maintenance is estimated at $1,400. An alternative is to rent a house of about the same siz
Please help solve the following question: Suppose that you consider insuring some property against damage. There is only one insurance company. After examining the risks and the premium, P, you find that you have no clear preference between buying insurance and not. Then, you hear about a new policy called probabilistic in
Please help with the following problem: Assume that the dollar loss, L, associated with being robbed by a mugger on the street is $3, and that being robbed occurs with a probability of p. Suppose an individual can influence p by exercising caution, but doing so will be costly. Let the cost, C, required to achieve probabilit
Question: Explain differences between adverse selection and moral hazard. use illustrative examples where appropriate.
Jersey devil inc is estimating its WACC. its target capital structure is 20% debt, 20% preferred stock, and 60% equity. its bonds have a 12% coupon, paid semiannually, a current maturity of 20 yrs, and sell for $950. the firm could sell at par $100 preferred stock which pays a 12% annual dividend, but flotation costs of 5% would
GDP - Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI).
1. Use the data below to calculate the values for GDP (expenditure approach), GDP (income approach), net domestic income (NDI), personal income (P1), and personal disposable income (PDI). (All values are in billions of dollars.) Indicate the components you use in calculating each of your answers. For example, to calculate net ex
Medical evidence has strongly shown the correlation between smoking and heart disease. The insurance companies have noticed it too. In fact, suppose that they have compiled data that shows the likely claims to be filed by various classes of smokers. To make the analysis simpler, suppose that the typical client for insurance has
Why is the government concerned about the level of home ownership in the community? Suggest some economic and social factors?
Project evaluation-investments, cash flow, NPV, and IRR: Revenues generated by a new fad product are forecast as follows:c. If the opportunity cost of capital is 12%, what is the project NPV?d. What is the project IRR?
Project Evaluation. Revenues generated by a new fad product are forecast as follows: Year Revenues year 1: $40,000 year 2: $30,000 year 3: $20,000 year 4: $10,000 Thereafter $0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the followi
Suppose that government budget deficits are financed to a considerable extent by foreign sources. How does this create a potential burden for the domestic economy in the future?
4. A sales manager seeks to optimize her advertising budget. Her goal is to obtain 160 million "Exposures" (readers and/or viewers exposed to an ad for the company). Seeking a younger, affluent audience, the firm would like at least 50 million of the exposures to be persons between the ages of 25 and 45. In addition the firm
What is the Russell 2000 Index current price (level) and weekly and YTD change percentage and actual numbers
The task is to use indifference curves and budget constraints to determine which of these two programs to chose. You are to assume that income is equal to $400 per month to spend on long-distance phone service and all other good (D) and that the utility function is U=mD. For each program, calculate the values of m and D that max
See the attached file.
Labor Economics: Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.
Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.
3 questions on Monetary approach to exchange rate determination, national income accounting of open economy and closed economy and purchasing power parity
1. Describe the monetary approach to exchange rates between a pair of countries, including description of the market involved and the equilibrium conditions that must hold. Why does this approach fail to fully explain exchange rate movements? 2. Explain the difference between open economy and closed economy national income ac
Please help with the following problem. Assume the government raises taxes by $20 billion and at the same time increases government spending by $20 billion. If the marginal propensity to consume (mpc) = 0.9 and everything else stays constant, according to the expenditure approach we can surmise that the level of income will