from the graph identify the equilibrium wage rate, the employment level, the opportunity cost and the economic rent. Concept Introduction: Economic Rent: the extra amount earned by a resource (e.g. land, capital, or labor) by the quality of its current use Opportunity Cost: the next best alternative forgone when making a decision between choices Equilibrium wage rate: the intersection of demand and supply of labor Demand for labor: this is a concept that defines the amount of demand for labor that an economy or firm is willing to employ at a given point of time.

Question

Suppose Person A is looking for a health insurance plan on Oregon's health insurance marketplace and they find one with the following details: Monthly Premium: $331 Deductible: $5,000 Primary care visit to treat injury or illness: $35 copay Imaging (CT/PET Scans MRIs): 40% coinsurance after deductible Ambulance: 40% coinsurance after deductible Inpatient hospital stay: 40% coinsurance after deductible Suppose further that Person A purchases this plan and it takes effect in January 2022. The cost Person A pays per month for this health insurance is equal to _. Person A must pay. before coinsurance kicks in. 0000 $35; $5,000 $35; $331 $331; $5,000 $331; $35 Multiple Choice 1 point Suppose Person A is looking for a health insurance plan on Oregon's health insurance marketplace and you find one with the following details: Monthly Premium: $331 Deductible: $5,000 Primary care visit to treat injury or illness: $35 copay Imaging (CT/PET Scans MRIs): 40% coinsurance after deductible Ambulance:…

Answer 1

Question

Chapter 11, Problem 4.6P

A

To determine

from the graph identify the equilibrium wage rate, the employment level, the opportunity cost and the economic rent.

Concept Introduction:

Economic Rent: the extra amount earned by a resource (e.g. land, capital, or labor) by the quality of its current use

Opportunity Cost: the next best alternative forgone when making a decision between choices

Equilibrium wage rate: the intersection of demand and supply of labor

Demand for labor: this is a concept that defines the amount of demand for labor that an economy or firm is willing to employ at a given point of time.

B

To determine

the demand for labor, new equilibrium wage rate, employment level, Economic rent and opportunity cost in case there is an increase in the price of a substitute resource.

Concept Introduction:

Economic Rent: the extra amount earned by a resource (e.g. land, capital, or labor) by the quality of its current use

Opportunity Cost: the next best alternative forgone when making a decision between choices

Equilibrium wage rate: the intersection of demand and supply of labor

Demand for labor: this is a concept that defines the amount of demand for labor that an economy or firm is willing to employ at a given point of time.

C

To determine

The effect on the demand for labor when demand for the final product decreases, the new equilibrium wage rate and employment level and to determine whether there is a change in the economic rent and opportunity cost

Concept Introduction:

Economic Rent: the extra amount earned by a resource (e.g. land, capital, or labor) by the quality of its current use

Opportunity Cost: the next best alternative forgone when making a decision between choices

Equilibrium wage rate: the intersection of demand and supply of labor

Demand for labor: this is a concept that defines the amount of demand for labor that an economy or firm is willing to employ at a given point of time.

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