Source: Editorial Board, "How Much Will Americans Sacrifice for Good Health Care?" New York Times, February 16, 2019. a. Why might price regulations reduce the number of new drugs and medical devices that firms offer for sale? O A. By reducing firms' potential profits from selling new drugs and medical devices, price regulation may reduce the incentive firms have to devote resources to the research and development necessary to develop these OB. Firms decrease the number of new drugs and medical devices they offer for sale in order to spite the government for imposing regulations on them. O C. Price regulations reduce the demand for new drugs and medical devices, and therefore firms reduce the number they offer for sale. O D. All of the above. b. Suppose that you are the economic adviser to a presidential candidate who to prepare a report discussing the relevant factors the candidate should consider. Use the concepts of opportunity cost and trade-offs to discuss some of the main issues you would include in your report. trying to decide whether she should support a proposal that Congress impose such regulations on the prices of pharmaceuticals and medical The presidential candidate should consider

Source: Editorial Board, "How Much Will Americans Sacrifice for Good Health Care?" New York Times, February 16, 2019. a. Why might price regulations reduce the number of new drugs and medical devices that firms offer for sale? O A. By reducing firms' potential profits from selling new drugs and medical devices, price regulation may reduce the incentive firms have to devote resources to the research and development necessary to develop these OB. Firms decrease the number of new drugs and medical devices they offer for sale in order to spite the government for imposing regulations on them. O C. Price regulations reduce the demand for new drugs and medical devices, and therefore firms reduce the number they offer for sale. O D. All of the above. b. Suppose that you are the economic adviser to a presidential candidate who to prepare a report discussing the relevant factors the candidate should consider. Use the concepts of opportunity cost and trade-offs to discuss some of the main issues you would include in your report. trying to decide whether she should support a proposal that Congress impose such regulations on the prices of pharmaceuticals and medical The presidential candidate should consider

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure A Q Figure B Figure C Price (dollars per unit) 15- Price (dollars per unit) 15 Price (dollars per unit) 15- 14- 13- 12- 11- 10- MC MC 14- 14- 13- 12- 11- 10- „MC ATC 13- 12- 11- 10- ATC ATC MR MR MR 9- 9- 9- 8- 8- 8- 7- 7- 6- 90 100 100 100 1i0 Quantity (units) 90 110 90 110 15 Qua Quantity (units) Quantity (units) Consider a perfectly competitive firm in a short-run equilibrium. Figure shows a firm in bad times because the firm produces units and makes a(n) O A. A; 100; economic loss O B. B; 90; economic profit O C. A; 110; economic loss O D. C; 100; economic loss O E. C; 100; normal profit
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A79. Which of the following is the most likely consequence of implementing the ‘Unified Payments Interface (UPI)’? (a) Mobile wallets will not be necessary for online payments. (b) Digital currency will totally replace the physical currency in about two decades. (c) FDI inflows will drastically increase. (d) Direct transfer of subsidies to poor people will become very effective.
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3 Calculate the income taxes that a person has to pay considering the table below- If a person's income is $6,500, how much does he pay in taxes? If a person's income is $13,500, how much does she pay in taxes? (a) (b) Taxable Up to $5,000 $5,001-$10,000 $10,001-$15,000 Income Taxes 10% of taxable income 14% of taxable income 16% of taxable income
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