Figure 9.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. The insurance companies estimate that 40% of its customers are high-cost type. If the insurance companies set the price equal to their average cost per customer, what is the insurance companies' average cost per customer ($Y)?
A. $4,000
B. $3,400
C. $2,800
D. $2,000
Answer: C
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The gross domestic product of Richland during a particular year was $672,500
If the expenditure on consumption during that year was $220,000, the expenditure on investment was $250,000, the expenditure incurred by the government was $100,000, and exports was $182,000, calculate the value of imports. A) $40,000 B) $79,500 C) $100,750 D) $21,500
Which of the following is a problem with the price system that can lead to fluctuations in output?
A) The price system works silently in the background. B) Prices may be flexible. C) Prices can be slow to adjust. D) all of the above
The demand for curve for money
a. shows the amount of money people actually hold b. shows the amount of money people would like to hold, given the constraints they face c. shifts if the interest rate changes d. is independent of the price level e. changes whenever the Fed changes the money supply.
Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Figure 13.11Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. How many widgets does the monopoly supply when they act so as to maximize their profits?
A. 200 B. 400 C. 500 D. Indeterminate from the given information.