When firms decide to offer health insurance to their workers [for simplicity we assume they pay the full cost of the policy and do not ask for an employee contribution], they need to reconsider the wages they are willing to pay their workers. Assume the worker values the health insurance at full cost. Please use a labor supply and demand graph (as we covered in class) to analyze the effect of introducing insurance on the labor market.

Part A: Show the supply and demand lines before and after health insurance is offered. Make sure to always label graphs well and indicate the equilibrium level of wages that result before and after health insurance is offered. How does this help us see who really pays for employer provided health insurance?

Part B: Suppose the original demand for labor equation is given by W=12-0.5L and the original labor supply equation is given by W=L. Suppose that health insurance costs $2 per worker. Please write down the new equations for the demand and supply graphs once insurance is introduced, and explain how you obtain them.

Suppose the country of Coventry is joining a customs union (CU). It can buy Product S from the country of Plata or the country of Soyuz. Plata is not in the CU, while Soyuz is in the CU. Before joining the CU, Coventry has a tariff on all imports of Product S. After joining the CU, Coventry does not have a tariff on the Product S imported from other countries in the CU, but maintains its tariff on the Product S imported from countries outside the CU. The tariff, when applicable, is $7. (Use the Basic Tariff Model in this analysis and assume no foreign retaliation on this product.)

1. The price of Product S from Plata is $62 and the price of Product S from Soyuz is $73. Suppose Coventry changes from not being in the CU to being in the CU.

(a) Who is Coventry’s supplier of Product S before joining the CU? After joining the CU?

(b) Is there a trade creation effect in this case?

(c) Is there a trade diversion effect in this case? Why?

(d) What happens to the Coventry Total Surplus for Product S because it joined the CU? Why?

Suppose the country of Coventry is joining a customs union (CU). It can buy Product S from the country of Plata or the country of Soyuz. Plata is not in the CU, while Soyuz is in the CU. Before joining the CU, Coventry has a tariff on all imports of Product S. After joining the CU, Coventry does not have a tariff on the Product S imported from other countries in the CU, but maintains its tariff on the Product S imported from countries outside the CU. The tariff, when applicable, is $7. (Use the Basic Tariff Model in this analysis and assume no foreign retaliation on this product.)

3. The price of Product S from Plata is $62 and the price of Product S from Soyuz is $65. Suppose Coventry changes from not being in the CU to being in the CU.

(a) Who is Coventry’s supplier of Product S before joining the CU? After joining the CU?

(b) Is there a trade creation effect in this case?

(c) Is there a trade diversion effect in this case? Why?

(d) What happens to the Coventry Total Surplus for Product S because it joined the CU? Why?

An SAT prep course claims to improve the test score of students. The table below shows the scores for seven students the first two times they took the verbal SAT. Before taking the SAT for the second time, each student took a course to try to improve his or her verbal SAT scores. Do these results support the claim that the SAT prep course improves the students' verbal SAT scores? Let d=(verbal SAT scores prior to taking the prep course)−(verbal SAT scores after taking the prep course). Use a significance level of α=0.05 for the test. Assume that the verbal SAT scores are normally distributed for the population of students both before and after taking the SAT prep course.

Score on first SAT 470 560 430 590 490 410 460

Score on second SAT 520 620 450 610 530 460 500

Step 2 of 5 : Find the value of the standard deviation of the paired differences. Round your answer to one decimal place.

purchases equipment on account. How would this affect the accounts on the books?

Wonky Willa's Chocolate Factory sold $10,000 of candy on account to the University of Houston for a special event. When UH pays the bill, the transaction recorded on UH's books will:

What is an unbilled or accrued revenue?

Adjusting entries:

Part 1

Read the scenario.

Patients who have scheduled coronary artery bypass grafts have a great need for education before, during, immediately following, and after discharge. This education helps the patient understand the procedure and what they should expect. It is essential to provide information regarding care before, during, and after the surgery. Also, patients need information on pain management, resuming activity and physical therapy, self-care, limitations, and concerns that they should report.

Part 2

Post a response to the discussion board.

Discuss the following questions in your post:

How can informatics be used to improve a patient's education about a CABG?

How can educating patients through informatics improve patient outcomes?

Describe at least two of the ten levels that e-patients access and use in regards to health care information online.

If a patient who is scheduled for a CABG states "I know all about this. I have been reading up on the Internet"—what concerns do you have?

What types of sources would you suggest a patient seek on the Internet?

Part 1

Read the scenario.

Patients who have scheduled coronary artery bypass grafts have a great need for education before, during, immediately following, and after discharge. This education helps the patient understand the procedure and what they should expect. It is essential to provide information regarding care before, during, and after the surgery. Also, patients need information on pain management, resuming activity and physical therapy, self-care, limitations, and concerns that they should report.

Part 2

Post a response to the discussion board.

Discuss the following questions in your post:

How can informatics be used to improve a patient's education about a CABG?

How can educating patients through informatics improve patient outcomes?

Describe at least two of the ten levels that e-patients access and use in regards to health care information online.

If a patient who is scheduled for a CABG states "I know all about this. I have been reading up on the Internet"—what concerns do you have?

What types of sources would you suggest a patient seek on the Internet?

5. Margaret Finance is the CFO of Dividends Rus Corp. She is trying to decide whether she should increase the dividend payment from $ 1.25 per share to $ 1.50 per share instead of using that money for repaying $ 2 m of long-term debt that would take the debt balance to $ 4 million. The Dividend Rus Corp is paying an 8% coupon rate and the current bond yield is 10%. The debt was issued at par.
The company latest after-tax Earnings is $ 32 m, up from after-tax Earnings of $ 24 m the year before. The Industry-average EPS is $ 3.25. The Net Income Before Taxes was $ 40 million. The company pays a flat tax rate (marginal tax rate = average tax rate).

Required:
a. What was the change in EPS (dollar and percentage)?
b. How compare Dividends Rus Corp EPS to the industry average EPS?

i. Why would this be important to a potential investor?
ii. Should Margaret increase dividends or repay $ 2 million of debt? Explain thoroughly

3.   The following table represents increasing cost production possibilities for the US and the rest of the world (ROW):

Using indifference curves and production possibilities curves, determine

            A. equilibrium relative prices at which production and consumption take place before trade, for both the US and ROW.

            B. What is the range of prices within which trade would be mutually beneficial for both the US and ROW?

            C. After specializing in production, determine the points at which consumption takes place if the US and ROW exchange 20 bushels of wheat for 20 yards of cloth, i.e. international relative price =1.

            D. Derive the offer curves for the US and ROW.

            E. Use supply and demand curves to examine the cloth market before and after trade in both the US and ROW.

An SAT prep course claims to improve the test score of students. The table below shows the scores for seven students the first two times they took the verbal SAT. Before taking the SAT for the second time, each student took a course to try to improve his or her verbal SAT scores. Do these results support the claim that the SAT prep course improves the students' verbal SAT scores? Let d=(verbal SAT scores prior to taking the prep course)−(verbal SAT scores after taking the prep course). Use a significance level of α=0.1 for the test. Assume that the verbal SAT scores are normally distributed for the population of students both before and after taking the SAT prep course. Student 1 2 3 4 5 6 7 Score on first SAT 480 530 520 530 360 380 550 Score on second SAT 530 580 560 610 390 400 610 Step 1 of 5 : State the null and alternative hypotheses for the test.