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What would traditional economic theory predict? What would behavioral economics predict?
What type of behavior is Ray exhibiting? What does traditional utility theory say about Ray's preferences? What would a behavioral economist say?
What prediction does utility theory make about each of these activities? What concept from behavioral economics explains this behavior?
Given a choice of an extra $1,000 or a gamble with the same expected value a person prefers the $1,000. How would a behavioral economist describe this decision?
What is asymmetric information? Give one example each of adverse selection, moral hazard, and the principal-agent problem.
What are two primary reasons why healthcare demand has increased dramatically over the last 20 years?
What is a supply-related reason for high medical care costs? What are the two primary ways in which health care is rationed?
What is the second patient's marginal cost of the consultation? Which patient is more likely to see the specialist?
In your answer, consider how an increased number of safety features affects the problem of moral hazard.
A customer wants a new health insurance policy. Even though the customer's medical records. Why would the insurance company insist on a physical exam?
What would happen to the price and the number of kidneys sold in the market? Would a shortage of kidneys continue to exist?
Given what you have learned about monopoly, what prices would you expect the hospital to charge? How much care would you expect it to provide?
Set up an equation to determine the monthly amount of medical expenses at which the consumer would be indifferent between the two plans.
What is the most important component (C, I, G, or NX) of GDP? Give an example of each component.
A farmer sells cotton to a clothing company for $1,000, and the clothing company turns the cotton. How much did GDP increase as a result of these transactions?
She wants to know whether she should pay attention to nominal GDP or real GDP. Which one do you recommend, and why?
If Max receives an unemployment check, would we include that transfer payment from the government in this year's GDP? Why or why not?
What are the four shortcomings with using GDP as a measure of well-being for the residents of a society?
A friend who knows of your interest in economics comes up to you after reading the latest GDP data. What should you tell your friend about this news?
What is the value added at each step of the production process? How does the total value added compare with the amount by which GDP increased?
How would increased efforts to count those goods and services affect our calculation of GDP?
Leisure time is not included in GDP, but what would happen if it was included? Why high work countries like South Korea fare better in international comparison?
Draw a diagram showing demand, marginal revenue, average total cost and marginal cost curves for Econoburgers. How much profit is Econoburgers making?
Consider two different companies. The first manufactures cardboard, and the second sells books. Which firm is more likely to advertise?
Who has a stronger incentive to maintain strict quality control in the production process-Titleist or the generic firms? Why?