When people purchase health insurance and then change their behavior after the purchase because the insurance protects them from loss, the health insurance market is said to face the problem of

If a $10 increase in government expenditure produces a change of $17 in gross domestic product, the value of the government expenditure multiplier is ________

A) 27 B) 1.7 C) 7 D) 170

What is meant by comparative statics? Assume that a firm wants to set up a factory. It considers four different locations

The rent of the factory space and the time taken to transport the products from each of the locations to the market is shown in the table below. It is also given that the opportunity cost of time is $10 per hour. a) Which is the optimum location? b) If the opportunity cost of time changes to $30 per hour, is there any change in the optimum? Location Time Taken to Transport Products to the Market (hours per month) Rent ($ per month) 1 180 3,000 2 150 3,200 3 100 3,600 4 60 4,100