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Inefficient Social Welfare Programs

1. Why are there still poor people in America half a century after the implementation of a system of social welfare programs that were designed to end poverty? 2. How much faith do you have that social security and Medicare will be there when it's your turn to collect?

Calculating Annual Costs

A community wants to construct a hazardous waste incinerator for household hazardous waste. The cost of the facility is expected to be $4,000,000. The cost of operating this facility is estimated to be about $20,000 per year plus salaries of $100,000 annually. The insurance on the facility will be $3,000 per year. What is the an

Money, Banking & Financial Markets

Can you provide me with definitions for the following terms: 1). Bank Examiner 2). FDIC (Federal Deposit Insurance Corporation) 3). Federal Reserve 4). Financial Economist 5). Loan Officer

Economic Perspective

From an economic perspective, what tendencies do you see in the evolution of the health insurance market in this country?

Consumer-Driven Health Plans

1. Consumer-Driven Health Plans As a patient, write your recommendations to accept or decline at least three types of consumer-driven health plans. Which types are appropriate for which patients? Provide your rational for each decision. 2. Managed Care As a patient, write your recommendations to accept or decline at least

Intermediate Microeconomics Preferences

A consumer has a demand function for good 1: x_1 (p_1,p_2,m)=19+m/(4p_1 )+6p_2 Where p_1 and p_2 are respective prices of good1 and good2 and m is the income. I am halfway through my questions. g) Assume well-behaved preferences and draw a diagram, with x_1 on the horizontal axis and x_2 on the vertical axis, showing th

Government Inefficiency

All organizations, government or business, large or small, operate with some inefficiency. It would be great if all inefficiency could be eliminated but, at best, in the "real world" it can only be reduced to an acceptable minimum. For the sake of this discussion let us assume that all federal government inefficiency has been re

Healthcare Plans

A large manufacturing company has for years offered generous health insurance to its employees. Over time, the cost of the health plan has increased considerably with the average cost being roughly $6000 per year. The firm has hired a management consulting company to make recommendations about how to reduce costs. The consulting

Healthcare Plans

Consumer-Driven Health Plans: How do consumer-driven health plans work for different sections of the population? Which socioeconomic group is likely to benefit the most? Consider the following sections of the population: Low-income versus high-income; Well versus unwell (people with chronic conditions and high costs of care) ; E

Incremental income statement

A company is considering offering a new product. The sales of the new product are forecasted to be $700,000 in year 1 of the planning period, double in year 2, and increase by $50,000 each year thereafter. COGS for the new product are estimated at 50% of the revenue in year 1 and this percentage is reduced by 5% each year after

Consumer-Driven Health Plans

Consumer-driven health plans (CDHPs) strive to control costs and improve quality of care by requiring consumers to take control of their own healthcare decisions. Consumers decide how they want to spend their healthcare dollars, depending on what is important to them. CDHPs are geared to encourage participants to enroll in some

Economic Principles and NHE

Table 1 presents a breakdown of the sources of national health expenditures for selected years from 1970 through 2009. Comment on the changes in the categories of expenditure sources (i.e., out-of-pocket, third-party payers, and types of third-party payers), both year-to-year changes and over the entire period. Table 2 presen

Graphing Demand Curves

Suppose that in the absence of insurance, the inverse demand for office doctor visits is given by the equation P1 = 150 - 30Q. Graph the demand curve. Graph the demand curve when the person has health insurance with a coinsurance rate of 25%. What is the demand for visits with and without insurance when doctors recei

Graphing Demand Curves for Medicaid Prescriptions

In some state Medicaid programs, the coinsurance rate for prescription drugs is 0 (recipients have no out-of-pocket expenses for prescription drugs). Assume the inverse demand for the number of prescriptions filled per month without insurance is P=45-5Q. Graph the demand curve with and without insurance. Over the past 15 y

Suppose you have a two-period model OLG in discrete time

Suppose you have a two-period model OLG in discrete time. Lt agents are born in time t, where Lt = (1+n)tL0. Normalize L0 = 1 and let n > 0. Preferences of a young agent born in time t are time separable: u(c1t,c2t+1) = 2(c1t)0.5 + 2(c2t+1)0.5, where c1t denotes consumption in period t; c2t+1 denotes consumption in period t+1

Flexible budgeting for Rockey Mountain Manufacturing

Rocky Mountain Manufacturing produces a single product. The original budget for November was based on expected production of 16,700 units; actual production for November was 14,362 units. The original budget and actual costs incurred for the manufacturing department follow: Original Budget A

Optimal Consumption Bundle using the Lagrangian Method

Kaidu consumes two goods, x_1 and x_2, with respective prices p_1 and p_2. His utility function is given by U_Kaidu (x_1,x_2 )=x_1^(1/4) x_2^(3/4) . Let p_1=5 and p_2=4. Kaidu's income is 80. - Suppose the government imposes a $1 tax each unit consumption of x_2, solve for the new optimal consumption bundle. How do i obtai

Demand curves for health clinic visits

Consider the following information on Alfred's demand for visits per year to his health clinic, if his health insurance does not cover clinic visits (100% coinsurance rate). P Q 5 9 10 9 15 9 20 8 25 7 30 6 35 5 40 4 (a) Alfred has been paying $30 per visit. How many visits does he make

Managerial economics problem

Given a diagram (see attachment) of an indifference curve and a budget line: a) Calculate the consumer's income. b) Calculate the equation of her budget line. c) Calculate the slope of her budget line. d) Calculate the price of Good X. e) Calculate the consumer's marginal rate of substitution in equilibrium.

This post addresses journal entries for expired insurance.

J. Bateman Enterprises prepaid $7,800 for a 12 month insurance policy on their delivery van beginning in October 2011. What would be the journal entry to recognize the monthly insurance that had been used up in January 2012? Item Accounts and Explanations Post Ref DEBIT CREDIT A Prepaid Insurance $7,800 Insura

Discussing Earnings Before Taxes (EBT)

Auton, Inc. a manufacturer of robots had total revenues of $2,000,000 in the year ending 2011 with an operating cost of $1,000,000. The company's earnings are taxed at 30% and its annual interest expenses were $300,000. The only depreciable asset the company owns is a specialized machine that it bought for $1,000,000 and is depr

Finding the slope of the budget line

Suppose a consumer buy books and DVDs. The price of a book is $10, the price of a DVD is $20, and the consumer's income is $400. If books are measured on the vertical axis and DVDs are measured on the horizontal axis, then the slope of the budget line is?