A highly debated subject in policy recently has been how to handle medical pricing (or medical insurance coverage). What are various parts of the medical system and how price does discrimination occur? Explain what purpose it serves and what potential harm is done.

What are included in the monetary indicators (M1, M2, LF, L) provided by the Bank of Korea?
Investigate and visualize the increasing trend of each indicator since 2000.

Describe how wars have been used to drive increased global legislation/policy and globalism? Can wars be purposefully used to achieve certain international goals?

The following equations describe a firm’s demand, marginal revenue, total cost, & marginal cost:

Demand: P = 1,000 – 10Q

Total Cost: TC = 500 + 10Q + Q^2

Marginal Revenue: MR = 1,000 – 20Q

Marginal Cost: MC = 10 + 2Q

a. What level of output should be produced to maximize profits?

b. What is the market price?

c. How much profit will be earned?

d. The firm sells cereal and competes with other firms selling slightly differentiated cereal products. What type of market is this firm operating in?

The following equations describe a firm’s total cost and marginal cost:

Total Cost: TC = 500 + 10Q + Q^2

Marginal Cost: MC = 10 + 2Q

e. If the firm is a price taker and other firms in the industry sell output at a price of $100, what price should the manager of this firm put on the product?

f. What level of output should be produced to maximize profits?

g. How much profit will be earned?

h. The firm sells orange juice, which is a perfect substitute, at a farmers market. What type of market is this firm operating in?

With the basic income-leisure choice model, show possible labor supply curve for the followings.

a. The poor who are at a minimum subsistence and who aspire to middle-class consumption patterns.

b. “workaholics” who have strong preferences for labor market work.

c. The wealthy who aspire to be idle rich.

d. Workers who are reluctant to change their work hours

How will the environment affect the airline industry? Give at least 10 affects and explain each

What are ways that governments are different from households? How do these differences result in needing to treat government deficits differently than households being in debt?

Consider the used-car market for the Ford Pinto described in class. There is now a surge in demand for used Pintos; buyers would now be willing to pay up to $17,000 for a peach and $7,000 for a lemon. All else remains identical to the example seen in class.

a. What price would buyers be willing to pay for a Pinto of unknown type if the fraction of peaches in the population, f, were 0.75?

b. Will there be a market for peaches if f=0.75? Explain.

c. What price would buyers be willing to pay if f were 0.5?

d. Will there be a market for peaches if f=0.5? Explain.

e. What is the minimum value of f such that the market for peaches does not collapse?

f. Explain why the increase in the buyers’ willingness to pay changes the threshold value of f, where the market for peaches collapse.

30. An increase in household saving causes consumption to

A. rise and aggregate demand to increase.

B. rise and aggregate demand to decrease.

C. fall and aggregate demand to increase.

D. fall and aggregate demand to decrease.

35. Which of the following Fed actions would both decrease the money supply?

A. buy bonds and raise the reserve requirement

B. buy bonds and lower the reserve requirement

C. sell bonds and raise the reserve requirement

D. sell bonds and lower the reserve requirement

38. Sometimes during wars, government expenditures are larger than normal. To reduce the effects this spending creates on interest rates,

A. the Federal Reserve could increase the money supply by buying bonds.

B. the Federal Reserve could increase the money supply by selling bonds.

C. the Federal Reserve could decrease the money supply by buying bonds.

D. the Federal Reserve could decrease the money supply by selling bonds.

Discuss your position on the following concerning Section 936 of the Internal Revenue Code: The 936 companies were criticized for arguing that they only defended their tax benefits without supporting local development as a research and high-tech center.

In Africa, the continent where the polio epidemic has been most difficult to control, international relief efforts aimed at disease eradication often work against a backdrop of civil unrest and war.  In some countries, temporary cease-fire agreements must be negotiated to allow vaccination and prevent serious outbreaks from occurring.  During peacetime and during war, low incomes make paying for the vaccine a real problem among the poor.  To make the oral polio vaccine more affordable, either consumer purchases (demand) or production (supply) can be subsidized.  Consider the following market demand and market supply curves for a generic oral polio vaccine:

Q_D     =  24,000 - 2,000P                (Market Demand)

Q_S     =  -4,000 + 1,500P                (Market Supply)

where Q is output measured in doses of oral vaccine (in thousands), and P is the market price in dollars.

1. Find the current equilibrium price and quantity in this market.
2. Find the equilibrium price and quantity in this market if the government offers a $7.00 per unit subsidy for providers of the vaccine.

c.   What will happen to the price buyers pay per dose of the vaccine as a result of the subsidy?

d.   What price will providers actually receive (net price) per dose yard after the subsidy?

e.   How much will this subsidy cost the government?

f.    Now suppose the government decides on a different policy. Calculate the equilibrium price/o\

tput solution after the institution of a voucher system whereby consumers can use a $7.00 voucher to supplement cash payments.

g.   What will happen to the net price buyers pay per dose of the vaccine as a result of the vouchers?

h.   What price will providers actually receive per dose after the vouchers?

i.    How much will this system of vouchers cost the government?

j.    Discuss the differences in these two approaches to helping solve the polio epidemic.

A firm that is in an oligopoly market will try to attain the benefits (for them) of acting like a monopoly by colluding with the other firms in the market and forming a cartel. However, these can break down to the point where the market is more similar to a competitive market. Explain why these agreements often break apart (be sure to include explanation of the Nash equilibrium and Dominate Strategy).

Why does an oligopoly market not just become a competitive market?

What are the problems with the current patent laws that relate to technology? Research the Internet regarding issues being mentioned by incumbent corporations versus start-ups.