Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 23, Problem 4QE
(a)
To determine
Determine the number of times that parents go out without their children.
(b)
To determine
Identify the price of babysitters.
(c)
To determine
Determine the average age of babysitters.
(d)
To determine
Determine whether the government should require a minimum wage and age of babysitters.
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A recent trend in health insurance is the Health Savings Account (HSA). The idea behind Health Savings Accounts is that rather than providing employees with health insurance that makes visiting doctors cost little more than a simple $10 or $20 copay the employer gives the employee money to use to spend on health care, but the employee bares the entire cost of seeing the doctor. What money given for health care not spent by the employee can be withdrawn by the employee as if it was additional income.
It is believed that Health Savings Accounts will reduce the total amount of money spent on seeing doctors. Using Supply and Demand analysis, explain why there is the expectation that HSA’s will reduce spending on doctors.
Ralph will consume any health care service just as long as its MB exceeds the money he must pay out of pocket. His insurance policy has a zero deductible and a 10 percent copay, so Ralph only has to pay 10 percent of the price charged for any medical procedure. Which of the following procedures will Ralph choose to consume?
a. An $800 eye exam that has an MB of $100 to Ralph.
b. A $90 hearing test that has an MB of $5 to Ralph.
c. A $35,000 knee surgery that has an MB of $3,000 to Ralph.
d. A $10,000 baldness treatment that has an MB of $16,000 to Ralph.
A website offers a place for people to buy and sell emeralds, but information about emeralds can be quite imperfect. The website then enacts a rule that all sellers in the market must pay for two independent examinations of their emerald, which are available to the customer for inspection.
How would you expect this improved information to affect demand for emeralds on this website?
How would you expect this improved information to affect the quantity of high-quality emeralds sold on the website?
Chapter 23 Solutions
Microeconomics
Ch. 23.1 - Prob. 1QCh. 23.1 - Prob. 2QCh. 23.1 - Prob. 3QCh. 23.1 - Prob. 4QCh. 23.1 - Prob. 5QCh. 23.1 - Prob. 6QCh. 23.1 - Prob. 7QCh. 23.1 - Prob. 8QCh. 23.1 - Prob. 9QCh. 23.1 - Prob. 10Q
Ch. 23 - Prob. 1QECh. 23 - Prob. 2QECh. 23 - Prob. 3QECh. 23 - Prob. 4QECh. 23 - Prob. 5QECh. 23 - Prob. 6QECh. 23 - Prob. 7QECh. 23 - Prob. 8QECh. 23 - Prob. 9QECh. 23 - Prob. 10QECh. 23 - Prob. 11QECh. 23 - Prob. 12QECh. 23 - Prob. 13QECh. 23 - Prob. 14QECh. 23 - Prob. 15QECh. 23 - Prob. 1QAPCh. 23 - Prob. 2QAPCh. 23 - Prob. 3QAPCh. 23 - Prob. 4QAPCh. 23 - Prob. 5QAPCh. 23 - Prob. 1IPCh. 23 - Prob. 2IPCh. 23 - Prob. 3IPCh. 23 - Prob. 4IPCh. 23 - Prob. 5IPCh. 23 - Prob. 6IPCh. 23 - Prob. 7IPCh. 23 - Prob. 8IPCh. 23 - Prob. 9IPCh. 23 - Prob. 10IPCh. 23 - Prob. 11IP
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