1. The state of California recently considered passing a tax on the services of doctors in that state in order to raise revenue to pay for universal health coverage for California residents. Suppose the average open heart surgery costs $100‚000‚ and at that price 23‚339 surgeries are performed each year. Fully explain what the most likely outcome would be in this market if a tax on surgeries is implemented. Use a graph if it will help. 2. Price Changes and Responses by Consumers | Price
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Economics TOPIC 4: AGGREGATE DEMAND (AD)/ AGGREGATE SUPPLY (AS) MODEL Learning Objectives • Understand AD and AD curve • Discuss factors shifting AD curve • Understand AS and AS curve • Discuss factors shifting AS curve • Understand Macroeconomic equilibrium LO1 Aggregate Demand (AD) • AD refers to the real GDP demanded • • • at each price level. Y = AD = C + I + G + (X – M) There is an inverse relationship between real GDP demanded and the price level. AD curve is downward
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301 paper Economics 301 Managerial Economics Homework 1 1) Beginning in year 0‚ with a payment of $50‚000‚ what is the present value of an asset in perpetuity which grows by 4% each year and which is discounted at the rate of 6% each year? 2) Should we proceed with a project that will pay us $100 million per year for the next five years in return for an investment of $400 million today? Why‚ or why not? Assume the interest rate of 5% per year. 3) Chapter 1 problem 9 4) Let
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Chapter 2 MCQ’s 1) According to the Law of Demand‚ the demand curve for a good will A) shift leftward when the price of the good increases. B) shift rightward when the price of the good increases. C) slope downward. D) slope upward. Answer: C 2) An increase in the price of pork will lead to A) a movement up along the demand curve. B) a movement down along the demand curve. C) a rightward shift of the demand curve. D) a leftward shift of the demand curve. Answer: A 3) An increase in consumer incomes
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Price - Elastic Products With the question as stated: When would you want to own a business that sells price-elastic products? I think that any time could be a good time to own a price-elastic business. Obviously‚ the most opportune time would be when the economy is in the state that it is in today. The best kind of business to be in would be a store like Wal-Mart. Because the fact that Wal-Mart can offer almost countless products for sale‚ the price point on any one product can cause a great
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Crashing Projects Exercise Given below is the information for the IT project we discussed in our Week 5 commentary and its network diagram. In the Week 5 commentary‚ we crashed the project by three days‚ i.e.‚ from 20 to 17 days by crashing Activity C for two days and Activity F by a day. Now proceeding from here: Activity ID Predecessor Normal Time (Days) Crash Time (Days) Normal Cost Crash Cost ($’000) ($’000) A - 5 2 $100 $205 B - 6 3 $140 $205 C - 7 5 $140 $200 D A‚ B 6 2 $100 $340
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Global Economic Environment Group Presentation Written Report (Group 1) Christy Lai Kei Kwan 12119785D 30th September 2013 Question 1 (a) How has Apple capitalized on the globalization of production? What advantages does manufacturing in China offer the company? ANS: Globalization has been a heat topic in these past years. Many international companies will use this advantage for their own production‚ and Apple is definitely one of the significant examples. Below shown are the ways that
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Midterm Break Midterm break is a poem that delivers the scene of a funeral in short snapshots narrated by the estranged boy whose brother has died. The title itself implies a disturbance of some sort‚ a ‘break’. However‚ it does not give the full meaning of the disruption felt by the boy and the titles’ meaning is shown in full only by the end of the poem. The boy in the poem’s aimless and confused outlook about what happened is told to us by his impassive style of narrating- he ‘sat all day…
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BRANDEIS UNIVERSITY Department of Economics Economics 10a Mr. Coiner Introduction to Microeconomics Fall‚ 2012 Problem Set 2 1. This question examines the impact of 5 events on the market for large automobiles with relatively low gas mileage and relatively high emission levels (think Hummer). Answer each part separately. For each event‚ indicate which curve (D or S) shifts‚ indicate in which direction (left or right) it shifts‚ and show in a demand-supply diagram in which
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Topic 10: The Transition Period I. The Free Trade Era in Europe. During the mercantilist era‚ trade was seen as a zero-sum game: one country’s gain was another country’s loss. If Spain imported more from England that she exported to England‚ she had to send specie to England to make up the difference. In the mercantilist view‚ this was viewed as a loss for Spain and a gain for England. So‚ countries established policies to encourage favorable trade balances: they subsidized export industries
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