Question

In: Economics

Anne has 30,000 dollars that she can spend on health care (c1) and a composite good...

Anne has 30,000 dollars that she can spend on health care (c1) and a composite good of every- thing else (c2). The price of a unit of health care is p1 = 50 dollars and the price of the composite good is p2 = 1.

1)Draw Anne’s budget constraint in a graph with c1 on the horizontal axis and c2 on the vertical axis.

2)Anne is offered a health insurance policy. The policy premium (the up front cost of the policy) is 4,000 dollars. The policy offers to cover 80% of Anne’s health care expenses up to a maximum of 100,000 dollars. It has a deductible of 1,000 dollars, meaning that Anne has to pay the first 1,000 dollars of expenses herself after which the 80% coverage kicks in. Draw Anne’s budget constraint if she purchases the health insurance.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Anne has 30,000 dollars that she can spend on health care (c1) and a composite good...
Anne has 30,000 dollars that she can spend on health care (c1) and a composite good of everything else (c2). The price of a unit of health care is p1 = 50 dollars and the price of the composite good is p2 = 1. a) Draw Anne’s budget constraint in a graph with c1 on the horizontal axis and c2 on the vertical axis. b) Anne is offered a health insurance policy. The policy premium (the up front cost of...
A couple will retire in 50 years; they plan to spend (in today's dollars) about $30,000...
A couple will retire in 50 years; they plan to spend (in today's dollars) about $30,000 a year in retirement, which should last about 25 years. They believe that they can earn 8% interest on retirement savings. The inflation rate over the next 75 years is expected to average 5%. a. What is the real annual savings the couple must set aside? Assume they will discontinue saving when they retire. (Do not round intermediate calculations. Round your answer to 2...
Cindy has $70 a month to spend on sport activities, and she can spend as much...
Cindy has $70 a month to spend on sport activities, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $20, and the price of an hour of tennis is $10. The table shows Cindy’s marginal utility from each sport. Hours per month Marginal Utility from Golf Marginal Utility from Tennis 1 60 40 2 50 36 3 40 30 4 30 10 5 20 5 6 10...
Chloe is buying souvenirs on vacation. She wants to spend 70 dollars at most, but only...
Chloe is buying souvenirs on vacation. She wants to spend 70 dollars at most, but only has 60 cubic inches of space available in her luggage. If bracelets cost 7 dollars and take up 3 inches of space and t-shirts are 5 dollars but take 15 inches of space, write and graph a system of four inequalities that model Chloe's possible purchases.Let x=the number of bracelets and y=the number of t-shirts. Use a scale of 2 on both axes. So...
An economy has two workers, Anne and Bill. Per day of work, Anne can pick 120...
An economy has two workers, Anne and Bill. Per day of work, Anne can pick 120 apples or 60 bananas, and Bill can pick 140 apples or 140 bananas. Anne and Bill each work 200 days per year. b. Assuming that only one fruit is picked in this economy, then the maximum number of each type of fruit that can be picked annually is either apples or bananas. c. If each worker fully specializes according to his or her comparative...
An economy has two workers, Anne and Bill. Per day of work, Anne can pick 100...
An economy has two workers, Anne and Bill. Per day of work, Anne can pick 100 apples or 250 bananas, and Bill can pick 80 apples or 80 bananas. Anne and Bill each work 200 days per year. a. Anne's opportunity cost of picking one more apple is (Click to select)0.4 apples250 bananas2.5 bananas100 apples. Bill's opportunity cost of picking one more apple is (Click to select)80 apples80 bananas1 banana1 apple. (Click to select)BillAnneNeither has a comparative advantage in apple...
A consumer has budgeted a total of K100 to spend on two goods, X and Y. She likes to consume a unit of good X in combination with a unit of good Y.
A consumer has budgeted a total of K100 to spend on two goods, X and Y. She likes to consume a unit of good X in combination with a unit of good Y. Any unit of good X that she cannot consume in combination with a unit of good Y is useless. Similarly, any unit of good Y that she cannot consume in combination with good X is useless. If the price of a unit of good X is K5...
Was the Affordable care act a good or a bad health care reform law? Pros: Why...
Was the Affordable care act a good or a bad health care reform law? Pros: Why is the ACA good? What did it accomplish? Which parts worked well? Cons: Why do some critics think the ACA is bad? What did people dislike about it?How should it have been done differently? What did it fail to fix/address?
Making budgeting decisions in health care is extremely important because a decision to spend money in...
Making budgeting decisions in health care is extremely important because a decision to spend money in one area may take away from another area. Address how would you go about balancing the demands of financial stability, growth, and profitable margins with the demand for the highest quality patient care.
Mrs. A, 78 years old, reports to her health care provider (HCP) that she has been...
Mrs. A, 78 years old, reports to her health care provider (HCP) that she has been waking up in the middle of the night feeling like she was going to suffocate. She has also noticed that her legs are tight, and it takes every bit of energy she has to walk to the mailbox. What additional information would be helpful?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT