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How does health insurance coverage affect the incentive to reduce medical expenses? For the insured person? For the provider of services? What happens to the incentive to hold down medical expenses once the initial insurance deductible is met?
Business Economics, Economics
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Consider a banking model with delegated monitoring. Markets are perfectly competitive. There is a large number of borrowers who lack the funds and a large number of lenders who have the funds. Each lender has 10 goods to ...
A financial consultant is interested in the differences in capital structure within different firm sizes in a certain industry. The consultant surveys a group of firms with assets of different amounts and divides the fir ...
1. Explain the reason for measuring government production at cost? 2. What is the main shortcoming in valuing government production in this way?
Suppose that a firm that produced buttons had a production function given by: q= 4L 0.5 K 0.5 . The firm has 16 units of capital in the short run. Determine the amount of labor required to produce 64 units of output ...
A binomial process has 892 trials and a probability of success of .78 what is the standard deviation of this process distribution?
After paying $1.50, you are allowed to open a newspaper vending machine freely (i.e. get as many as you want). In contrast, a soft drink vending machine only drops one can after you pay the same amount of money. Why? Ple ...
If the market for a good is operating in the inelastic range of market demand. Which of the two policy that follow is more effective when handling (technical) externalities: Cap-and-trade or emissions fee?
1. Explain the different elements of property rights. Provide an example of how the US economy infringes on each. 2. Explain why inequality is considered to be a social "bad" by many people. In what way could inequality ...
Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $900. a. In the table provided below, calculate and enter either the interest rate that the bond would yi ...
1. Explain why Fukayama thinks we are at the "end of history". How do you respond to his contention? 2. Explain what information a Lorenz curve gives you. How is this information summarized by a Gini coefficient. 3. Expl ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
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