Assess how objective risk is important in assess the relative variation in actual claims experience and why it is critical in writing up medical insurance plans.

1. Find the annual equivalent of an infinite cash flow which starts as $1 000 for the first 5 years , then increases as a geometric progression growing at a rate of 4% .use an 8% annual discount rate.

1. Three market structures: perfect competition, monopoly, and monopolistic competition.
– In each of these, would you expect to see firms spending money to advertise their products?
Why or why not?

2. Is advertising good or bad from society’s viewpoint? Try to think of at least one “pro” and “con.

This year the government of Bangladesh has introduced a fiscal stimulus package that significantly increases public expenditure. Because the government has problems borrowing in domestic and international credit markets these days, it asks the Central Bank of Bangladesh to print money and buy government bonds, so that the government will have sufficient money to spend.

Assume that the exchange rate is flexible and that the interest parity condition holds. Also, assume that the price level is exogenously determined and the conditions in the rest of the world remain unchanged. Finally, assume that the government's policy is viewed as temporary and has no impact on the course of the economy beyond the current year.

How would this policy affect the levels of private consumption and investment in Bangladesh this year?

Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $70,000 and her store made $145,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $35,000 plus 15% of the store’s profits. Since the change, the store is performing much better, and she forecasts profits this year to be $290,000 (again, not counting the payment to her top manager).

Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change?

$   

Does the manager make more money under the new payment scheme?

a) Suppose that the government plans to impose a tax on labour employed as an input in agriculture. Consider agriculture as a highly labour-intensive sector and discuss the possible effects of the tax, using the general equilibrium framework. b) Suppose that the government of your province has decided to provide a housing subsidy for low-income families of the province to raise their standard of living. The government has also decided to impose an income tax on workers (employees) to generate funds for the subsidy. Analyze the welfare effects of this decision. What are the suggestions you can make to minimize any negative welfare costs?

Q3(using graph(s) and words )Use the economic theories to determine whether the statement in each of the following question is True, False or Uncertain. Please explain using both words and graph(s) and make it concise. Your answer should be around ¾ to 1 page for the question.

Consider a monopoly provider of water tanks. The monopolist could practice third degree
price discrimination by setting a price of $5000 for a 5000-litre water tank to residents in
rural areas, but charge only $4000 for the same 5000-litre water tank to urban residents
because the elasticity of demand is more inelastic in urban areas.

The use of petroleum products is thought to be one of the lead causes of pollution and climate change. One main use of petroleum products is as fuel for cars and other forms of transport. Discuss the pros and cons of taxing petrol to reduce pollution.

Students believe that if everyone in the course studies for the final exam, then the average mark everyone can expect is 75. However, if no one studies, everyone does so poorly that grades are scaled and the average mark of 60 is achieved. If one person studies while everyone else doesn’t, the one who studies achieves 80, the rest achieve 45 (and no scaling takes place). This game is a one-off simultaneous game with the two players to be ‘You’ and ‘Everyone else’. If everyone colludes, then the Nash equilibrium is for no one to study.

Q1(using graph(s) and words )Use the economic theories to determine whether the statement in each of the following question is True, False or Uncertain. Please explain using both words and graph(s) and make it concise. Your answer should be around ¾ to 1 page for the question.

Consider a dam which provides drinking water for a local community and which allows free access to all. As a public good the only way to manage this resource is through government regulation so that overuse does not occur.

Assuming that most modern cars share very similar characteristics, what do customers really buy – a product or an experience? In your opinion, what drives car-buying decision? Explain.

Using ONLY a single market model, compare and contrast the long run equilibrium outcomes of perfectly competitive markets and monopoly markets. Make sure to clearly identify the deadweight loss that occurs along with labeling the prices and quantities charged by each market structure. (10 pts)

Write about North Shore Housing Center or any other housing centers. Give at least 2 main points and explain. also include conclusion.

In 200 words describe the slave economy of the South, and the ways in which the Northern economy benefited from slavery. Provide examples of ways in which slaves sought to resist enslavement.