Suppose when Joan is healthy, she earns $50,000 which generates utility of 100 utils.When sick, the cost of treatment is $30,000 and her utility falls to 60 utils. The probability of illness occurring is 25%. Income of $32,500 produces actual level of utility of 90. Income of $42,500 produces actual utility of 98.

i. Find Joan’s expected income and expected utility without health insurance.

ii. Would Joan buy health insurance, given the insurance policy offered sells at an actuarial fair premium (i.e., reflects only expected costs of medical care to treat illness). Explain your answer carefully.

b). One of the problems resulting from health insurance is moral hazard.

i. What is moral hazard? What are 2 different types of moral hazard? Please explain carefully.

ii. How does Nyman’s (2003) view on moral hazard differ from the conventional view of moral hazard?

iii. What are 2 examples of responses to reducing the moral hazard problem? Explain briefly.

What is

2.   MAD
3.   Hegemon
4.   Unilateralism
5.   Perpetual Peace
6.   Anarchy
7.   Populism
8.   Anti-egalitarianism
9.   Proxy wars
10.   Human perfectibilit

If you’re like some college students, you are always worried about having enough money. Suppose that you decide to become an Uber driver, and you offer rides to students on weekends. For a fee, you will drive them to parties and pick them up at the end of the night. Your marginal cost per ride is $10. To keep things simple, assume you are the only person in your town providing this service; that is, you’re a monopolist. On any given weekend, there are six customers who want a ride—three men and three women. The table below shows the most each person is willing to pay for a ride.

Part 1) If you could charge only a single price, you would earn   $------ in profit.

Part 2) Suppose you could charge men and women different prices. The tables below show each group's demand.

If you charge men one price and women another price, you would earn   $------ in profit.

Part 3 : How much profit would you earn if you practice perfect price discrimination?   $ -------

Assume Adia and Zardia can switch between producing wheat and producing beef at a constant rate:

In one hour, Andia can produce 3 Bushels of wheat and 5 pounds of beef.

In one hour Zardia can produce 4 bushels of wheat and 6 pounds of beef.

At which of the following prices would both Andia and Zardia gain from trade with each other? A - 6 bushels of wheat for 10.5 pounds of beef. B - 12 bushels of wheat for 19 pounds of beef. C - 24 bushels of wheat for 34 pounds of beef

Social Efficiency or Equity:  Which is more important economically?    

Suppose in Jack’s production function, capital and labor are perfectly substitutable such that q = K + L. Assuming, as we have all term, that the wage rate is w and r is the rental rate of capital, find Jack’s long-run total cost function representing Jacks’ total costs in terms of output, TC(q) = C(q)

Hau Lee​ Furniture, Inc., spends 45 ​% of its sales dollars in the supply chain and finds its current profit of ​$35,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to ​$40,000 so he can obtain the​ bank's approval for the loan.

Current Situation
Sales $140,000  
Cost of material $63,000 (45%)
Production cost $21,000 (15%)
Fixed cost $21,000 (15%)
Profit $35,000 (25%)
A)
What percentage improvement is needed in the supply chain strategy for profit to improve to $40,000​? What is the cost of material with a ​$40,000 ​profit?

A decrease of ..........% in material​ (supply-chain) costs is required to yield a profit of ​$40,000 for a new material cost of ............? . (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole​ number.)
B)
WHAT Percentage improvement is needed in the sales strategy for profit to improve to $40,000? what must sales be for profit to improve to $40,000?

an increase of .........% in sales is required to yield a profit of $ 40,000 , for a new level of sales of $......

Suppose you manage a local grocery store, and you learn that a very popular national grocery chain is about to open a store just a few miles away. Use the model of monopolistic competition to analyze the impact of this new store on the quantity of output your store should produce (Q) and the price your store should charge (P). What will happen to your profits? Explain your reasoning in detail. How and why do profits change? What could you do to defend your market share against the new store? (200 WORDS)

List at least 4 ways the behaviors of airlines in the US have changed since the deregulation of the late 1970s. Who has gained by the deregulation of the airline industry? Who has lost? Explain your answer using economic concepts including monopoly power, competition, producers' surplus, consumers' surplus, deadweight loss, etc.

a) Plot the Lorenz curve for the income distribution:

(2,2,4,6,8,20,30,40,60,100)

Consider an income redistribution that takes 20% of income from each of the three richest individuals and distribute equally to individuals that have an income below the poverty line (9). Plot the Lorenz curve again to demonstrate that inequality has decreased.

What happened to the coefficient of variation between the two periods? What can you conclude about the change in inequality between periods from this?

Pretend you are a Shark Tank advisor. Two business partners have come to you for advice for a business they own and operate. This assignment requires you to create a one-page executive summary (not including backup tables of your analysis) of your advice for this business.

Topic/Question - Read the following scenario then address the recommendation/advice section of this assignment.

Tired of hiring themselves out and abiding by corporate rules and various personality issues with management of fitness facilities, two fully certified personal trainers opened a fitness facility. Each trainer was certified in indoor cycle (aka Spinning), personal training, strength, high-intensity training, and TRX. The facility was housed in the finished basement of one owner’s personal residence. They invested $3000 that covers startup equipment costs. Startup equipment included spin bikes, fans, weights, step benches, and mats. Over time they upgraded the spin bikes and added more features such as resistance bands, ropes, TRX equipment, kettlebells and other items for approximately $1000. Based on periodic feedback from clientele, they added some yoga classes and another instructor to teach additional spin classes. The owners taught 90% of the classes themselves and did not take a salary from the business. The yoga classes fully funded the yoga instructor. The additional spin instructor cost approximately $150/month. Costs included $500 monthly for insurance, $200 monthly for utilities, $80 for music licensing. Clientele paid $10 per class unless they purchased a package of 20 classes for $85 or 10 classes for $65. They ran approximately 26 classes a week. Unless there were 2 clients in a class, the class was cancelled. The business averaged 4 clients per class and averaged cancelling 3 classes per week. They also had personal training clients who paid 20 per session. The business averaged 8 personal training sessions per week. Tax rate is 20%. Depreciation on the equipment is 20% a year. Efficiency of the business is compromised from time to time based on clientele – since this is a boutique business that runs classes of 5-6 individuals, personalities and drama sometimes require the business owner’s significant management time in the form of communications with clientele.

Between the two of them, they could earn $800/month by contracting themselves out to other facilities. Additionally, without the business, the trainers could conduct personal training sessions in the basement facility using the equipment they already have and would incur insurance costs of $60/month, no music licensing fees and $100 utilities.

Unemployment Question

Assume a city called Macroland, where the total population is 80,000. Of that 50,000 are people between the ages of 18 and 65, and 10,000 below 18 and the rest above 65. In the month of January in Macroland, the number of people in the 18 to 65 years old group that have jobs are 35,000 people, The number in that age group looking for jobs are 7,000 people. Answer all parts to the question for the population between ages of 18 and 65 only. You may type the answer on text if possible or upload a file.

a. How many people are in the labor force?

b. How much is the unemployment rate ?

c. How much is the labor force participation rate?

Now assume in the month of February in Macroland there were some changes in the labor market. Of the people who were employed, 6000 lost their jobs but only 4500 of the 6000 who lost jobs were interested in looking for jobs. Of the people in January who were unemployed, 2000 got jobs, and 800 stopped looking for jobs.

d. Given the changes, what is the labor force of Macroland in February?

e. How much is the unemployment rate in February?

f. How much is the labor force participation rate in February?

g. How many discouraged workers were there for changes between January and February?

Apply principles of leadership, governance and management to the CLAS Case Study of Peru.