Econ 132 Winter 2014
FINAL MIDTERM EXAM (A): SOLUTIONS
Cameron
Version A
(b)(i) John pays 2000 + .3 x (5000 2000) = $2,900.
(ii) Mean +/- 2 x standard deviation of mean = 10,000 +/- 2 x 5000/sqrt(10,000)
= 10,000 +/- 100 = ($9,900, $10,100).
(c)(i) Elasti
Cameron
ECON 132 (Health Economics): FIRST MIDTERM EXAM (A)
Winter 14
Answer all questions in the space provided on the exam.
Total of 36 points (and worth 22.5% of final grade).
Read each question carefully, so that you answer the question.
Short Answer
Cameron
ECON 132 (Health Economics): SECOND MIDTERM EXAM (A) Winter 14
Answer all questions in the space provided on the exam.
Total of 36 points (and worth 22.5% of final grade).
Read each question carefully, so that you answer the question.
Short Answer
Cameron
ECON 132 (Health Economics): FINAL EXAM (A)
Answer all questions in the space provided on the exam.
Total of 60 points (and worth 44.5% of final grade).
Read each question carefully, so that you answer the question.
Multiple Choice (1 points each
Econ 132 Winter 2014 SECOND MIDTERM EXAM (A): SOLUTIONS
Cameron
Version A
1.(a) Marginal cost for 1,000 adults = 1,000 $25 = $25,000.
Marginal benefit for 1,000 adults = 1,000 (0,24 0.14) $200 = $20,000.
No. Do not vaccinate as MC exceeds MB.
(b) Cost per
Econ 132 Winter 2014
FIRST MIDTERM EXAM (A): SOLUTIONS
Cameron
Version A
(c)(i) Reduce adverse selection by requiring people to buy insurance (if they dont there is a
financial penalty).
(ii) Require (larger) employers to provide insurance (if they dont t
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