(40 Pts. Total) Below Is A Market For Health Insurance, With 5 People. Their

(40 pts. total) Below is a market for health insurance, with 5 people.  Their expected costs, risk premiums, and willingness to pay for insurance are given. The average expected costs are 112. Suppose an insurance company offers a premium equal to 112 in Period 1. Determine who will buy and won’t buy at that premium (top table to fill in).  Simply enter “buy” or “won’t buy” in the table. a. (30 pts.) Find the insurer’s revenue, expenses and profit at that premium (bottom table to fill in). Then repeat for the higher premiums.    b. (10 pts.) Over time, what is happening to the number and type of peoplein the market for insurance, and what is happening to insurer profits? 2. (30 pts. Total) This problem is based on the Market for Lemons experiment. The below table is based on almost 400 pairings that occurred in the experiment in a previous semester.  In some pairings, a transaction occurred (used car was sold), and in some pairings no transaction occurred. Average seller value(no transaction) 3,022.42 Average Seller Value(transaction)2,511.89 a. (10 pts.) Based on the table above showing the average seller value in each case, is there evidence of adverse selection? Explain. b. (10 pts.) Circle/highlight one and explain your answer.In the Market for Lemons experiment, the role of the car seller is analogous to the role of the insurer / consumerin the insurance example in #1. Explain: c. (10 pts.) Circle/highlight one and explain your answer.In the Market for Lemons experiment, the role of the car buyer is analogous to the role of the insurer / consumerin the insurance example in #1. Explain: 3. (30 pts. total Bonus) In the Principal Agent experiment with asymmetric information, expected payoffs for the risky project are as follows (where RS equals revenue if successful, RU equals revenue if unsuccessful, w equals wage, b equals bonus, p equals the probability of success, e_H equals the cost of high effort and e_L equals the cost of low effort): Boss (if worker chooses high effort):              p*(RS) (1-p)*(RU) – w – p*b Boss (if worker chooses low effort):               RU – w Worker (if worker chooses high effort):          w p*b – e_H Worker (if worker chooses low effort):           w – e_L Suppose: RS = 800 RU = 200 p = 0.5 e_H = 100 e_L = 50 a. (15 pts.) What minimum bonus will induce the worker to exert high effort? b. (15 pts.) At the minimum bonus amount, will the boss’s payoff be higher under high effort than under low effort?  Show work to get credit. c. (10 pts.) Bonus: What range of bonus amount will both induce high effort from the worker and ensure the boss is better off than under low effort? Show all work to get credit.

If Buying Domestic Goods Can Boost Domestic Economy, Why Do People In The U.S.

If buying domestic goods can boost domestic economy, why do people in the U.S. keep buying foreign goods, creating a huge U.S. trade deficit?

More Independent Central Bank Can Better Control A Country’s Inflation. Thus We Should Give

More independent central bank can better control a country’s inflation. Thus we should give central bank independence (in other words autonomy) in making policies. But, isn’t policy independence anti-democratic?

2. Typically, We Think Of Revenue Generating Parts Of An Organization Being Things Like

2. Typically, we think of revenue generating parts of an organization being things like sales and marketing. I would argue that project managers are also revenue generating. Use your knowledge of the project management profession you have gained in this course to describe why this is so. Be sure to be specific and discuss different project management skills that can make money for organizations.

International Financial Markets (Singapore) What Factors Are Responsible For The Stability Or Volatility In

International financial markets (Singapore) What factors are responsible for the stability or volatility in that exchange rate?

The International Financial System 1. Are There Any Restrictions On The Exchange Of Singapore’s

The International Financial System 1. Are there any restrictions on the exchange of Singapore’s currency?

Some Economists Feel That Unemployment Can Be Reduced By Lowering The Minimum Wage Rate.

Some economists feel that unemployment can be reduced by lowering the minimum wage rate. In other words, they believe that the minimum wage rate acts as a price floor (for labour) set by the government that results in excess supply of labour in the market. a) with the aid of diagrams and suitable examples discuss the economic effect of price controls. b) With the aid of relevant examples distinguish between administered prices and price controls.

The Market Structure Can Largely Influence The Degree Of Profitability Of A Given Supplier.

The market structure can largely influence the degree of profitability of a given supplier. As a result, it is important for governments to keep a watch on the degree of competition within various industries. a.) using marginal cost (MC), Average cost (AC) and Marginal revenues (MR) curves in diagrams, illustrate and explain how a firm in operating in a perfectly competitive market can make abnormal profits, normal profits and loss. b.) discuss the rationale for government in creating monopolies for the provision of basic goods and services in your country. c.) Explain the different strategies that the government can use to prevent monopoly power in your country.

This Problem Walks Through A Chain Of Events. For This Problem, Suppose That The

This problem walks through a chain of events. For this problem, suppose that the initial event is that the United States enters a recession due to a drop in consumer confidence. (Assume we were producing at full employment before consumers started to become pessimistic.) a. Depict the event described above in three different graphs, and state what happened to output, unemployment and inflation: i. Keynesian Cross ii. AD/AS iii. Phillips curve Output: Unemployment: Inflation: b. Now, suppose that in response, both the Fed and the Federal government decide to respond. The Fed decides to lower interest rates, and the government decides to increase spending. i. Describe a possible action by the Fed that would lower interest rates. Show this on a graph in the space below. (We used two different graphs to depict this in class. You may choose either.) ii. Explain why the government may wish to increase spending rather than decrease taxes by an equivalent amount. iii. Describe one possible limitation to the monetary policy prescribed in part i. iv. Describe one possible limitation to the fiscal policy prescribed in part ii. c. Draw the resulting shifts in your graphs from part (a). In the space below, explain what happens to output, unemployment, and inflation, and how you can see the changes in each graph (or if you cannot see the changes on a given graph, explain why).

Current Consumption Of Diesel Is 10 Million Gallons Per Day And The Price Is

Current consumption of Diesel is 10 million gallons per day and the price is $1 per gallon. The elasticity of demand of Diesel is -0.4 and the elasticity of supply is 0.6. The government decides to limit consumption by imposing rationing, with a so-called “white market.” Under the rationing system, motorist are required to pay for Diesel in the usual way, but, in addition, they must submit to the dealer a coupon for each gallon purchased. The government distributes 9 million of these coupons per day, giving each motorist an equal number. Coupons not used can be bought and sold legally (and we assume costlessly) on the “white market.” a. What will be the new quantity of gasoline? What price will sellers receive? b. What will be the market price of coupons? c. Calculate by how much consumers are better off or worse off as a result of this change.

International Trade And Investment: Regional Economic Integration Is Singapore Participating In Any Regional Integration

International Trade and Investment: regional economic integration Is Singapore participating in any regional integration efforts? Please explain.

Hi Can Someone Answer This Please Was Answered Before But Incorrect And Slightly Confusing,

hi can someone answer this please was answered before but incorrect and slightly confusing, would b appreciated if its clear thanks!!

You Have Two Factories That Produce Identical Products (lets Say Plastic Forks). The Plants

You have two factories that produce identical products (lets say plastic forks). The plants and equipment are fully depreciated and there are no fixed costs. As a result, your cost basis in the USA is TCusa = 3Yusa2 your cost basis in CHINA is TCchina = Ychina2 The demand for plastic forks is Y=80 a. With no restrictions (competitive markets exist) how many plastic forks will the USA produce? b. How much would China need to lower their cost to produce all of the 80 plastic forks? c. How much of a subsidy would the firm need to produce all 80 plastic forks in the USA, given the original TC functions?

2. An Important Element To Understanding The International Plete The Following Exercises: Monetary System

2. An important element to understanding the international plete the following exercises: monetary system is keeping updated on current growth trends worldwide. A German colleague told you yesterday that Deutsche Bank Research provides an effective way to stay informed on important topics in international finance from a European perspective. One area of focus for the site is emerging markets and economic and financial challenges faced by these markets. Find an emerging market research report for analysis. On which emerging market region did you choose to focus? What are the key takeaways from your chosen report?

Le CWIVU U U UUIUIU UL! Um Upprunately, Would [20 Marks] Question 4 Consider

hi can someone answer this please was answered before but incorrevt and slightly confusing thanks

Producers Are Motivated To Increase The Price Of A Product When It Looks

Producers are motivated to increase the price of a product when it looks favorable to increase profit and have more money available for additional production, but why must they always be cautious when committing additional resources to increased production in response to an initially favorable consumer response to a higher price for their product? What is a budget constraint, and what restrictions does it place on consumers? Our text, other texts, and various economists loosely claim that extreme cases can “qualify” as perfectly inelastic demands, but is this true in the real world? Why or why not? Briefly describe one example of the law of diminishing marginal utility from your own life. What role do time and substitutes play in determining whether or not a good faces a more elastic demand or a more inelastic demand?

1. Briefly Describe One Example Of The Substitution Effect From Your Own Life. 2.

1. Briefly describe one example of the substitution effect from your own life. 2. Describe what a complementary good is, and then set forth what happens to the demand for any product when the price of its complementary good increases. 3. With respect to consumers, when the price of a good is more elastic, what does this mean, and when the price of a good is more inelastic, what does this mean? 4. What is behavioral economics, and what is the basic technique or method used to engage in behavioral economics? 5. With respect to producer prices, what signals do businesses receive from a more elastic demand, and what signals do they receive from a more inelastic demand?

Huawei Ltd Is A Technological Company That Stays Abreast With Competition By Continuously Improving

Huawei Ltd is a technological company that stays abreast with competition by continuously improving its product ranges. The company ensures that they have a product at every stage of the product lifecycle. Huawei is planning to launch the P25 phone, a high-performance business phone designed for mobile professionals. It offers the latest mobile technology features and applications, including push to talk, email, Bluetooth connectivity and a VGA camera in an innovative flip-design. Given the increased competition within the sector, the company expects the P25 to have a life span of 2 years. Moreover, this competition may force Huawei to reduce selling price by N$100 which would result in an increase in demand of 100 000 P25. Huawei intends to price each P25 at N$6 000 and sell over 25 000 000 phones per annum. Annual production P25 Direct costs (N$) Overheads (N$) 20 000 000 360 000 000 140 000 000 35 000 000 630 000 000 185 000 000 In addition, to the P25, Huawei has been selling the P20 that it introduced a year ago. The P20 is now about to enter the maturity stage of its life cycle which is expected to last for ten weeks. Each P20 has a variable cost of N$3 800 and takes 1 standard hour to produce. Huawei is unsure which of four possible prices the company should charge during the next ten weeks. The following table shows the results of some market research into the level of weekly demand at alternative prices: Selling price per unit (N$) 10 000 8 500 8 000 7 500 Weekly demand (units) 60 000 80 000 120 000 140 000 REQUIREMENT MARKS Subtotal Total a) Determine the demand function, where P= a – bX), for the Huawei P25. 8 8 b) Calculate the marginal cost for the manufacture of a P25 and the total fixed costs. 8 16 c) Find the price (P) and the quantity demanded (X) in the demand function by equating the MC to MR (marginal cost to marginal revenue). MR = a -2bx 5 21 d) Calculate which of the four selling prices should be charged for the Huawei P20, in order to maximise its contribution during its maturity stage. 5 26 please help

Name, Define And Give Examples Of Each Category Of The Four Econmic System. Also

Name, define and give examples of each category of the four econmic system. Also please explain in detail how each category is scarce. 2. 5. Consider the markets below. Summarize and show on a fully labeled S/D diagram what happens, all else equal, what happens if the mentioned events occur. Be sure to indicate which curve changes, how it changes, why it changes and what the effect is on P* and Q*. If the determinant (reason why) has a subcategory, be sure to name both the determinant AND the subcategory involved. Start grey pencil/black pen, shifting curve changes color to blue. a. Market for Dining in Fast Food Restaurants, all else equal, consumers’ income levels increase significantly. b. Market for Heavy Duty Pickup Trucks, all else equal, the price of gasoline decreases tremendously. c. Market for personal computers, all else being equal, the cost of CPU chips (as a component part) to computer manufacturers increases. d. Market for diamond jewelry, all else equal, a large previously unknown diamond field is discovered in West Texas (where it is geologically unlikely to occur) with multiple properly owners, and DeBeers is blocked from buying any

With Respect To Producer Prices, What Signals Do Businesses Receive From A More Elastic

With respect to producer prices, what signals do businesses receive from a more elastic demand, and what signals do they receive from a more inelastic demand?

Producers Are Motivated To Increase The Price Of A Product When It Looks Favorable

Producers are motivated to increase the price of a product when it looks favorable to increase profit and have more money available for additional production, but why must they always be cautious when committing additional resources to increased production in response to an initially favorable consumer response to a higher price for their product?

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