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Calculate Joe's annual explicit costs, implicit costs, and economic profit from his shoe shine business.
Lee's accountant recorded the depreciation on Lee's cottage during 2011 as $7,000. What did the accountant say Lee's profit or loss was?
Explain what might be the performance for each of your portfolios at the end of the year.
Explain what happens in an economy when the financial markets limit access to capital. How does this affect economic growth and employment?
Explain why a financial investor in stocks cannot earn high capital gains simply by buying companies with a demonstrated record of high profits.
Why do very small companies tend to raise money from private investors instead of through an IPO?
What is Laurence Kotlikoff's proposal for fixing health care in the United States? Draw a graph to illustrate how his proposal would work.
What are the key economic problems in providing an efficient quantity and distribution of health-care insurance and service?
Provide an example of private information that a baseball player who wants a no-trade clause possesses.
How would the health-care system you've described compare with that in the United States today? How would it compare to that in Canada?
Why would you buy collision insurance? If the insurance company offers you a large deductible or a no-claim bonus are you likely to take the offer?
Why is there an adverse selection problem in a transaction between Mary and an insurance company? Explain why or why not?
How has Jim's budget in terms of airfares and other vacation-related expenses changed? Is Jim better off or worse off in his new situation?
What is the relative price of a movie ticket? If the price of a movie ticket falls to $4, how will Tim's consumption possibilities change? Explain.
What does marginal utility theory tell you about the ratio of the marginal utility from singles on discs to the marginal utility from singles downloads?
what is the change in the relative price of a movie ticket? How do marginal utility per dollar from movies and the marginal utility per dollar from soda change?
How many sundaes does she buy? If the price of a sundae doubles to $8 and other things remain the same, how many sundaes will she buy?
Why Would Ben ever want to buy more than one carton of orange juice a day or no orange juice? Explain your answer.
Draw a graph of Amy's budget line. Can Amy buy 7 cans of soda and 2 cups of coffee a week? Can she buy 7 cups of coffee and 2 cans of soda a week?
Tony is maximizing total utility. If Tony's marginal utility from water is 0.5 unit per gallon, what is his marginal utility from a DVD rental?
List the combinations of burgers and magazines that Jerry can afford. What is the relative price of a magazine? Explain your answer.
You open a 5-year CD for $1,000 that pays 2% interest, compounded annually. What is the value of that CD at the end of the 5 years?
If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was the interest rate you charged?
What is the total amount of interest collected from a $5,000 loan after three years with a simple interest rate of 6%?
If the insurance company were selling life insurance separately to each group, what would be the actuarially fair premium for each group?