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See all Philip's info

Teaching Experience

I taught a one-day class, How to Make Money: Tips for Mathematical and Financial Analysis of Investments, with Splash! Chicago to Chicago middle and high school students. I also taught Woodlawn middle school students math in the University of Chicago Math Department's SuperMath program. Additionally, I have informally tutored my friends in high school and college in math, physics, chemistry, and economics.

Extracurricular Interests

I am a swimmer and water polo player. I play in the UChicago's pep band, which performs at school sports games.

Top Subjects

Calculus

I have taken and excelled in 2 year-long calculus courses

Economics

I am taking and excelling in many economics courses

Standardized Test Results

PSAT

  • Aggregate: 229

SAT

  • Aggregate: 2360
  • Math: 800
  • Reading: 790
  • Writing: 770

SAT II

  • Chemistry: 800
  • Physics: 800
  • Mathematics Level 2: 800
Microeconomics (College Advanced) This is a review for a written lesson.
Statistics (College Intro)
Economics This is a review for a written lesson.
Statistics
Economics This is a review for a written lesson.
Economics "Very helpful and knowledgable!"
Probability (College Level) This is a review for a written lesson.
Geometry "Should have looked at assignment before wanting to start lesson. "
Calculus (college level II)
Economics "he didn't know what he was doing "
1-10 of 117 Reviews

Subject: Microeconomics (College Advanced)

Someone asked:

i Need help answering the following questions: this is a practice exam.

  • Final Practice Exam.docx This attachment has been locked.

Philip responded:

Attached. Feel free to ask me questions.

  • b42c3ddba9113036b23a20b2e0039237_6962ccf28b7274ccc9cd4b3f65940092.docx This attachment has been locked.

Feedback:

Subject: Economics

Someone asked:

Only part a, b, and c.
https://docs.google.com/document/d/1EObdTwpKKc57hyt_iZytoK1cjeqRVhIFB1NgcITCP3U/pub

Thanks in advance!

Philip responded:

a. First: .15*$43953+($70000-$43953)*.22=$12329.29
Second: .15*$70000=$10500
b. The Canadian federal income tax does not achieve horizontal equity because two households with equal ability to pay pay quite different amounts.
c. An optimal transfer for the first household is $35000, resulting in a liability of $10500. This is optimal because all the income is taxed at 15%, the minimum rate. The second household can optimally transfer 0 since their income is all taxed at the minimum rate. The first household saves $12329.29-$10500=$1829.29 and the other saves 0.

Feedback:

Subject: Economics

Someone asked:

Consider the market for private disability insurance. Imagine that the economy is populated with two types of workers: high risk workers (h) and low risk workers (l). High risk workers have a 90% probability of being disabled and low risk workers become disabled with probability 30%.
Suppose that 92% of workers in the population are low risk and 8% are high risk. Suppose that, in the case of injury, both workers incur $50 in medical expenses. Imagine the annual income for both workers is $100. The preferences of both workers are represented by the utility function u(c) = c^0.5. Assume that workers are expected utility maximizers. Suppose that a single company offers private disability insurance.

Here are questions:
https://docs.google.com/document/d/1Kh-8Tf6yfFOT8ftKoFa3__H0nOEea7Tc4K_9FY1R2Vc/pub

Thanks in advance!

Philip responded:

1. If random workers walk into the insurance company for insurance, the expected revenue is .92*7+.08*34=9.16 and expected costs are .92*.3*20+.08*.9*50=9.12, so expected profit is 9.16-9.12=.04>0.
2. I claim that there is a market failure if the above situation is the market equilibrium. I will prove my claim by constructing an alternative insurance scheme that does not harm the insurance company and showing that both types of workers achieve higher expected utility under the alternative scheme. Under the market scheme, low-risk workers achieve utility .3*(100-50+20-7)^.5+.7(93)^.5=9.13173 and high-risk workers achieve utility 66^.5=8.12404. Now, I will fully insure both types of workers and devise a system of taxes that depend on the worker's risk status such that high-risk workers are not harmed and low-risk workers benefit. Under the market system, the profit component from high-risk workers is .08*34-.08*(.9*50)=-.88. Therefore, we will set taxes that do not quite cover costs for such workers. Since they were paying for full insurance in the market scheme, we just set a tax of 34 per high-risk worker, it then follows that high-risk workers are not harmed. Low-risk workers now need to be taxed enough to pay .88+.04 to cover the costs of high-risk workers and profits for the insurance company. They also need to cover their costs of insurance, which are .3*50=15. So they need to be taxed 15.92. Then, their utility is (100-15.92)^.5=9.169515, which is higher than they received in the market scheme. Hence, there exists a Pareto improvement on the market scheme, so there is a market failure.
3. The insurance company might also try to determine which workers are high-risk and low-risk, for example by asking workers to submit an employment form from their employer so the insurance company can know which job they work at and what firm they work at and use that information to infer their risk status.

Feedback:

Subject: Probability (College Level)

Someone asked:

question 51 please

Philip responded:

So we just need to compute a bunch of cases:
Draw 3 letters:
Case 1: 2 A's, 1 A, 1 L:
4C2*4C1*2C1/10C4=8/35
Case 2: 2L's, 1 W, 1A:
8/35
Case 3: 2W's, 1L, 1A:
16/10C4=8/105
Hence we get 3 letters with probability 8/15
2 letters:
Case 1: 3A's, 1L:
4C3*4/10C4=8/105
Case 2: 3L's, 1A:
8/105
Case 3: 2As. 2Ls:
6*6/10C4=6/35
Case 4: 3As, 1W:
4*2/10C4=4/105
Case 5: 3Ls, 1W:
4/105
Case 6: 2L's, 2As:
6/10C4=1/35
Case 7: 2Ws, 2As:
1/35
Total probability for 2 letters: 16/35
Total probability for 1 letter is hence 1/35
Mean: 1*1/35+2*16/35+3*18/35=87/35
Variance=1/35*(87/35-1)^2+16/35(87/35-2)^2+18/35(87/35-3)^2=376/1225. Tell me if you have any questions.

Feedback:

Subject: Economics

Someone asked:

So I have a test coming up next wednesday and professor gave us a guideline / review sheet for us to go over. I have done almost all of it my self but I need someone independently to go through it to ensure I will be studying the right answers and know the process.

  • Econ Questions.docx This attachment has been locked.

Philip responded:

Feel free to message me with any questions and I can answer a lot of them free of charge, it took me about 37 min to write up these.

  • b1cb722788910dd613689b8977f8260a_a1513e06b99ad097f57f48d6b06e3ad5 (3).docx This attachment has been locked.

Subject: Chemistry

Someone asked:

propane,c2h8 , and n-octane, c8h18, are important components of the widely used fossil fuels. the enthalpy change for the combustion of 1 mole propane is -2219 kj and that for 1 mol octane is -5466kj. calculate the enthalpy change per gram for each compound

Philip responded:

Carbon has a molar mass of 12g/mol and hydrogen has a molar mass of 1.008 g/mol. Thus, propane has a molar mass of 12*2+8*1.008=32.064 g/mol and n-octane has a molar mass of 18*1.008+8*12=115.44 g/mol. Thus, the enthalpy change per gram of propane burned is -2219kJ/mol*mol/(32.064 g)=-69.21 kJ/g and the enthalpy change per gram of n-octane burned is -5466 kJ/mol*mole/(115.44 g)=47.35 kJ/g. It only took me 8 minutes to answer this question, so feel free to ask me clarifying questions and I can spend some time answering them free of charge.

Feedback:

Subject: Statistics

Someone asked:

A Z score of -2.9 means that the value under consideration is 2.9 standard deviations below the mean.

Philip responded:

True, by the definition of a z-score. A z-score is defined as the number of standard deviations an observation is under the mean, so a negative z-score indicates a value under the mean.

Subject: Chemistry

Someone asked:

What is a semiconductor

Philip responded:

A semiconductor is a substance that has both metal-like and nonmetal-like properties. As the name suggests, semiconductors do not conduct as well as metals but conduct better than nonmetals. Their conductance can sometimes be changed by alloying them with different materials, as with silicon. They thus have uses in electronic devices. Semiconductors are generally found between metals and nonmetals in the periodic table. They can look somewhat metallic, like silicon. They generally do not have the malleability of metals. Semicondutors can be elements or compounds. Some examples of semicondutors include silicon, germanium, gallium arsenide, and silicon carbide. The reason that semiconductors have conductances between metals and nonmetals is that their band gaps are intermediate in size. The band gap is the energy that electrons must acquire in order to travel.

Feedback:

Subject: Economics

Someone asked:

The reservation prices of three classes of demanders of Cable Channels Lifetime, Disney, and ESPN are given below:

Each class has equal number of demanders. No one group has more members than another.

Class Lifetime Disney ESPN
30 Year Old Males $4 $3 $22
30 Year Old Females $18 $8 $13
3 to 7 year olds $ 3 $20 $5

It cost $5 to produce and distribute each Channel. The cable company can sell each separately, sell them as a bundle, or both.

a. What bundling pricing strategy would you recommend?
b. How much more profitable is the best strategy compared to the next best?.

Please fully explain and show all work for all bundles and possible bundles.
Please provide which bundling pricing strategy is optimal and recommended.
Please provide how much more profitable the best is from the second best.

Please DO NOT take on this lesson if you cant fully answer the question or answer it incorrectly.

Thank you

Philip responded:

Attached

  • Bundles.docx This attachment has been locked.

Subject: Statistics

Someone asked:

Hello I am submitting to questions that I need back asap. I tried to work on them but I can say I am totally lost with both questions. Please help!
A professor has been teaching statistics for many years. His records show that the overall mean for final exam scores is 85 with a standard deviation of 10. He believes that this year’s class is superb to the previous classes. The mean for the 40 students is 90.

a. What is the null hypothesis? He believes that this year’s class is superb to the previous classes.

b. What is the research hypothesis? He records show that the overall mean for final exam scores is 85 with a standard deviation of 10.

c. Is this a one or two tailed hypothesis? One
d. Which test should you use? Why?
e. Calculate the appropriate statistical test.
f. What is the critical value for α = .05?
g. What do you conclude?

A researcher gives a group of participants (n = 15) a memory technique to use. He finds that they remember on average 20 words (sample standard deviation = 3) while the average number of words remembered in the population is 15.

a. What is the null hypothesis? A researcher gives a group of participants (n=15) a memory techniques to use.
b. What is the research hypothesis? He finds that they remember on average 20 words
c. Is this a one or two tailed hypothesis? two
d. Which test should you use? Why?
e. Calculate the appropriate statistical test.
f. What is the critical value for α = .05?
g. What do you conclude?

Philip responded:

1. a/b. You mixed up your null and research hypotheses. The null hypothesis always contains some sort of equality (less than or equal to, equal to, or greater than or equal to) and the research hypothesis contains a strict inequality (less than, greater than).
Your answer for c looks good.
d. Since the sample size is large (over 30), the z-test is appropriate.
e. z=(sample mean-null mean)/(std dev/(sqrt(sample size)))=(90-85)/(10/sqrt(40))=3.16.
f. The critical value for alpha=.05 can be found from a lookup table such as http://www.google.com/imgres?imgurl=http://images.tutorvista.com/cms/images/67/Positive-Z-score-chart.jpg&imgrefurl=http://math.tutorvista.com/statistics/z-score-table.html&h=618&w=555&sz=226&tbnid=01lPkZDOy-vG7M:&tbnh=90&tbnw=81&zoom=1&usg=__Z6Y5pYBH1KWA6LdnugY1S89X4ms=&docid=Jw6a0Qx2J9eXfM&sa=X&ei=iIM7UpuiJMfEqgHxqYCwBg&ved=0CDYQ9QEwAg&dur=487 as 1.65.
g. Since the z-score is greater than the critical value, I reject the null hypothesis. Thus, I have statistically significant evidence that this class is better than previous years' classes.

2. a. The null hypothesis assumes the experimental treatment has no effect compared to the control treatment. Here, the experimental treatment is memory techniques and the control treatment is no technique (average in population). Therefore, the null hypothesis would be that people using the technique on average remember 15 words.
b. The research hypothesis is always an inequality. Here, it seems like the memory technique is intended to help the participants and thus, the research hypothesis would be: the average number of words that people using the memory technique remember is more than 15.
c. This would then be a one-tailed hypothesis.
d. The sample size is smaller than 30, but still at least 15. Therefore, the t-test is most appropriate (it offers less power than the z-test but works for sample sizes 15 or larger).
e. I assume you have access to some sort of t-test computation software like at http://www.graphpad.com/quickcalcs/OneSampleT1.cfm?Format=SD. We get t=6.4550.
f. On this page you can find a table of critical values for alpha=.05
http://psych.csufresno.edu/psy144/Content/Statistics/t-tests_rev.html
df=N-1, so 14. Thus, the critical value is 1.7613.
g. Since the t-value is greater than the critical value, I reject the null hypothesis. I have statistically significant evidence that the memory technique improves the number of words people remember.

Feedback:

Subject: Economics

Someone asked:

Suppose that you want to test the claim that the mean weight of ocelots is 30 pounds or less. You collect a sample of 100 ocelots and find that the mean weight in the sample is 30.8 pounds. The standard deviation is 4 pounds.

Part (a) (1 point)
Please consider the following statement: “Since the sample mean is greater than the claimed population mean, it is not necessary to carry out a hypothesis test and we can just reject the null hypothesis.”
Please state whether you agree or disagree with the statement and explain your answer.

Part (b) (2 points)
Using a level of significance α of 0.01, test the null hypothesis H0: µ≤30 using the 5-step procedure.

Part (c) (2 points)
Using a level of significance α of 0.01, test the null hypothesis H0: µ≤30 using the p-value.

Philip responded:

Part a: I disagree with the statement because it is possible that the sample mean is over the claimed population by chance alone even though the null hypothesis is true. Therefore, we need to perform a statistical test before we reject the null hypothesis.

Part b:
Step 1: Research question:
We want to know whether the mean weight of ocelots is 30 pounds or less.
Step 2: Stating hypotheses:
It is given that the null hypothesis is μ ≤30. In words, this translates to "the mean weight of ocelots is 30 pounds or less".
Our alternative hypothesis is the only alternative: "the mean weight of ocelots is more than 30 pounds".
Step 3:
We need to calculate a test statistic. The z statistic will work, since we may assume the sample is random and the sample is approximately normal by the Central Limit Theorem. The sample standard situation is sigma=(4)/(sqrt(100))=.4. The z-score of our observation (of the population mean was 30) is z=(30.8-30)/.4=2.
Step 4: Compute probability of test statistic:
This has a p-value of 1-.9772 (use a table like http://www.google.com/imgres?imgurl=http://images.tutorvista.com/cms/images/67/Positive-Z-score-chart.jpg&imgrefurl=http://math.tutorvista.com/statistics/z-score-table.html&h=618&w=555&sz=226&tbnid=01lPkZDOy-vG7M:&tbnh=90&tbnw=81&zoom=1&usg=__Z6Y5pYBH1KWA6LdnugY1S89X4ms=&docid=Jw6a0Qx2J9eXfM&sa=X&ei=qXk2UsK5L5DOigLXq4CICw&ved=0CDkQ9QEwAw&dur=167)= .0228.
Step 5: State conclusions:
We fail to reject the null hypothesis since our p-value of .0228 is greater than our alpha value of .01. Therefore, we do not have statistically significant evidence that the mean weight of ocelots is 30 pounds or more.

Part c:
We have already done the p-value portion of the test above (correct me if I have misinterpreted the question).

Subject: Probability (College Level)

Someone asked:

Hi, there are 2 questions here. I would like to see whole process for each part and final answers

Philip responded:

6a. If X=3, then to get exactly two girls there must be 2 girls and 1 boy. Given G=3, the number of girls is a binomial random variable with success probability 1/2. Using the general formula for k successes in a binomial random variable with n trials and success probability p, P(G=2)=n!/(k!(n-k)!) p^k (1-p)^(n-k)=3!/(2!*(3-2)!)*.5^2*(1-.5)^(3-2)=.375.

6b. Marginal probability refers to the probability when nothing additional is known. There are two ways G can be 2: X=3 and G=2 or X=2 and G=2. We will calculate the probability G=2 if X=2. P=2!/(2!*(2-2)!)*.5^2*.5^(2-2)=1/4. The marginal probability is the sum over all conditional cases on X of P(X=k)*P(G=2|X=k). Here, we have P(G=2)=P(X=2)*P(G=2|X=2) +P(X=3)*P(G=2 |X=3)=.2*.375+.3*1/4=.15.

6c. To get the probability mass function, we need to work out the probability that G=0,1,or 3. We will work out the G=1 and G=3 cases and use the complement to get the G=0 probability. Using the same formulas, P(G=3|X=3)=3!/(3!(3-3)!)*.5^3*.5^(3-3)=1/8, P(G=3)=P(X=3)P(G=3|X=3)=.2*1/8=.025 and P(G=1)=.4*.5+.3*.5+.2*.375=.425 so P(G=0)=1-.425-.025-.15=.4.

7a. I will assume you are comfortable with multivariable calculus here, if not send me a message and I will go over it in a lesson. P(Y <= 1)=integral_x=0^1 integral_y=0^1 2x(y-x)^2=1/6.
7b. The marginal density of X is the probability X is a certain value (summing up all possibilities for Y). The marginal density of X is integral_y=0^1 2x(y-x)^2=2/3x(3x^2-3x+1).
7c. E(Y/X) is the quotient Y/X weighted by the density of that point. E(Y/X)=integral_x=0^1 integral_y=0^2 2x(y-x)^2*y/x=4.
7d. If we want to show X and Y are not independent, we can provide a value of Y such that conditional on that value of Y, the conditional distribution of x is not equal to the marginal distribution. If y=0, then the conditional distribution of X is 2x^3, which is not equal to the marginal distribution. Hence, X and Y are not independent.

Feedback:

Subject: Probability (College Level)

Someone asked:

Hi, I would like to see whole process and final answer.

Philip responded:

The standard deviation is the square root of the variance. For the first 50 observations, the standard deviation is sqrt(76.4)=8.74. We calculate z-scores for this std dev and mean 100: z=(value-mean)/(std dev)=(98-100)/8.74=-.229 and z=(103-100)/8.74=.343. Using a z score table such as the one at http://www.google.com/imgres?imgurl=http://images.tutorvista.com/cms/images/67/Positive-Z-score-chart.jpg&imgrefurl=http://math.tutorvista.com/statistics/z-score-table.html&h=618&w=555&sz=226&tbnid=01lPkZDOy-vG7M:&tbnh=90&tbnw=81&zoom=1&usg=__Z6Y5pYBH1KWA6LdnugY1S89X4ms=&docid=Jw6a0Qx2J9eXfM&sa=X&ei=l0ItUt74LePoigKzwIHACg&ved=0CDoQ9QEwAg&dur=159, we see that the probability that an observation has score less than .229 is .6141 and the probability an observation has score less than .343 is .6331. Since the normal distribution is symmetric, the probability an observation has score more than .229 is .6141 and hence the probability that an observation has score less than .229 is 1-.6141=.3859. Thus, the probability that an observation has score between -.229 and .343 is .6331-.3859=.2472 and that is also the probability X1 is between 98 and 103.

The sum of normal random variables is normal. If two random variables have m1 and m2 as means and v1 and v2 as variances, their sum has mean m1+m2 and variance v1^+v2^2. Hence, the average is a normal random variable with mean 100 and standard deviation sqrt((50*76.4+5*127)/55)=9. We get z scores z=(103-100)/9=.33 and (98-100)/9=-.22. There is a .6293 chance of being under z score .33 and .5871 chance of being under z=.22. Then, there is a .5871 chance of being over z=-.22 and a 1-.5871=.4129 chance of being under z=-.22. Thus, the chance of being between z=-.22 and z=.33 is .6293-.4129=.2164 and that is also the probability Xhat is between 98 and 103.

Subject: Calculus

Someone asked:

Derive a general solution for the equation xy'' + y' = 0 by seeking a solution of the form x^lambda.

Philip responded:

Suppose the solution has form y=x^lambda for some constant lambda. Suppose that the power rule can be used for both differentiations. Then, y'=lambda*x^(lambda-1) and y''=lambda(lambda-1)*x^(lambda-2). Substituting into the equation yields:
x*lambda(lambda-1)*x^(lambda-2)+lambda*x^(lambda-1)=0
lambda((lambda-1)x^(lambda-1)+x^(lambda-1))=0
lambda(lambda-2)(x^(lambda-1))=0
lambda=0 cannot be a solution because it violates our original assumption of the usability of the power rule, but lambda=2 is a solution.
To generalize the solution, note that adding any constant c to the end does not change the equation because differentiation removes constants, and multiplying the solution by any constant k also preserves equality.
Hence, the general solution is kx^2+c with k and c constants.

Feedback:

Subject: Microeconomics

Someone asked:

1.)Assume that a producer has a budget of $4000 per growing season, that there are only two variable inputs (fertilizer and insecticide), and
that the price of one ton of fertilizer = the price of one barrel of insecticide = $400,
Maximum output could be achieved when fertilizer and insecticide are used in the following amounts:
Q(f)= ____ tons of fertilizer and
Q(i)= ____ barrels of insecticide
[Answer with two whole numbers separated only by a comma: no spaces]
Example: 8,4
2.)By using the inputs of fertilizer and insecticide in the optimal amounts (that you identified in the previous question), how much was added to total corn output?
Relative to a situation where no fertilizer and no insecticide were used, total product was ______ thousand bushels greater.
3.)Now if the price of both variable inputs to production increases to $500 (per ton of fertilizer and per barrel of insecticide), but the budget remains at $4000, maximum total product is achieved when inputs are used in the following amounts:
Q(f)= ____ tons of fertilizer, and
Q(i)= ____ barrels of insecticide.
[Again, answer with two whole numbers separated only with a comma]
4.) As the result of an "income effect" caused by the input prices rising, the use of fertilizer and insecticide can now only raise output by ____ thousand bushels of corn.
5.) Again assume a budget of $4000 and a that a barrel of insecticide still costs $400, but that the price for fertilizer was cut in half to only $200 per ton.
The optimal combination of inputs will now be

Q(f) = ____ tons of fertilizer and
Q(i) = ____ barrels of insecticide
6.) Now assume that the producer's budget is unlimited, and that the inputs are once again both $400 per unit, but that the producer will limit spending on inputs to avoid having the cost of one more unit of input exceed the dollar value of additional output produced (MRP). For this type of question, the dollar value of a thousand bushels of corn (output) must be given. Assume that it is $200 per 1000 bushels.
Under these conditions, the optimal amounts of inputs would be no more than 6 tons of fertilizer, but between ____ and ____ barrels of insecticide.

Philip responded:

Since the price of fertilizer and insecticide are equal, set the MP's equal and spend as much as possible without going over budget. Steadily keep trying lower minimum MPs until the budget is approached. We know 400Q(f)+400Q(i)=4000, or Q(f)+Q(i)=10. MP=5 leads to Q(f)=4 and Q(f)=6. Since all money is spent, that must be the optimum (this approach works since both technologies are at diminishing marginal returns at these quantities).

The additional production is the sum of all the MPs of each barrel of insecticide and ton of fertilizer used. Thus, it is 10+9+8+6+8+10+11+9+7+5=83. Hence, the extra production is 83 1000's of bushels.

Again, use the same approach as in the first part and hope that diminishing marginal returns have set in. MP=7 exhausts the budget. Thus, Q(f)=3 and Q(i)=5. Since diminishing marginal returns have set in, we are done.

Use the same approach as #2. 10+9+8+8+10+11+9+7=72. Thus, the extra production is 72 1000's of bushels.

Now, the new budget constraint is 200Q(f)+400Q(i)=4000, or Q(f)+2Q(i)=20. Now, we set MP/P of both technologies equal. Taking the unit of currency to be bundles of $200, we have unchanged MP/P=MP for fertilizer and MP/P=MP/2 for insecticide. Now, we decrease MP/P until the budget is nearly exhausted or exhausted. MP/P here is 1.5 to exhaust the entire budget. Hence, Q(f)=6 and Q(i)=7 is the optimum. We are done due to diminishing marginal returns taking place.

Now, any unit such that MRP is greater than or equal to MP*C is purchased. The 6th ton of fertilizer has MRP $400 and the 7th barrel of insecticide is the last to have MRP over $400 ($400/200=2 thousand bushels of corn must be produced from a unit of input). Therefore, the optimum is Q(f)=6 and Q(i)=7.

Feedback:

Subject: Microeconomics

Someone asked:

1.)The remaining questions on this pertain to producer decision-making, but involve the same basic logic. The objective is to maximize total production (TP), (or "sales" in this example) -under a certain budget constraint. This time the constraint is financial, and the only two competing inputs that contribute to sales are television ads (input A) and radio ads (input B).
Notice that the data are the same as before, but go by different names. Instead of making decisions by way of comparing MU, you'll now make the same decisions by comparing MP: marginal product, or the number of additional lottery tickets sold as the result of airing one more ad each day. Use the data provided with the link below to answer the remaining questions.
Begin by assuming that the advertising budget is $6000 per day and that the cost of a TV ad = the cost of a radio ad = $500. Basically, this means that $6000 = [Q(TV ads) + Q(radio ads)]x $500, or dividing by 500,
12 =Q(TV ads) + Q(radio ads)
For those of you who prefer English, the total number of ads each day will be 12 (or less) if we stay within our budget.
Under these conditions, the optimal composition of ads will be:
___ TV ads each day and
___ Radio ads each day.
2.)Under the conditions laid out in question #6, sales of lottery tickets can total as high as _____ thousand tickets per day
3.)If the advertising budget now increases to $7000 with the two inputs to sales (radio and TV ads) remaining at $500 each, the optimal quantities of them would now be....
____ TV ads per day, and
____ Radio ads per day
4.) Now assume that the budget is back to only $6000 per day, but that the prices of the inputs (the two different types of ads) are no longer the same. Assume now that TV ads increase to $600 each, and that radio ads sell for only $300 each. Your logic now must take into account these different prices by comparing "bang for the buck", or MP per the price of each input.
The new optimal combination of TV ads to Radio ads for maximizing ticket sales under this budget constrant is:
____ TV ads per day, and
____ Radio ads per day

Philip responded:

Use optimality (MP radio ads=MP TV ads) and feasibility (all money is spent) to approach the correct solution.
Decrease the common MP steadily and take everything with at least that MP until MP has decreased enough that all money is spent.
An MP of 2 results in 7 TV ads and 5 radio ads per day which spends the entire budget, therefore, 7 TV ads and 5 radio ads per day is optimal.

This optimal combination yields 150+29=179 thousand ticket sales per day, which is the highest possible since it is an optimum.

With the budget increase, keep decreasing the MP until the budget is exhausted. This occurs with common MP 1. Then, optimal quantities are 8 TV ads and 6 radio ads.

With the price change, the optimality condition changes to MP/P radio ads = MP/P TV ads. Since this is a discrete problem, this condition will yield at least an approximate solution (since MP is decreasing). Feasibility is also changed to 600(TV ads)+300(radio ads)=6000, which simplifies to 2(TV ads)+radio ads=20.
Since radio ads are now normalized to unit price (units of $300), their MP/P is the same as their MP and TV ads have normalized price 2, which means MP/P=MP/2.
Again, steadily decrease MP/P until the budget is exhausted.
MP/P=1 is the solution, yielding 7 TV ads and 6 radio ads. Thus, the sales-maximizing combination is 7 TV ads and 6 radio ads.

Feedback:

Subject: Microeconomics

Someone asked:

1.)Now suppose that a technological advance has the effect of making the same truck twice as productive, but not changing its price at all. The result will be that half the number of trucks will be needed to accomplish the same productive task of harvesting ten tons of corn, and the isoquant will shift to look like the one below. Which technique will NOW be cost-minimizing in a "high-wage" country where the weekly cost (price) of labor is $500 and the weekly price of capital (rent for each truck) is $2000?
2.)What is the total cost of the technique that you've chosen in question #5 with the input prices specified there?
3.)Now suppose that the technological advance that doubled the productivity of capital (trucks) makes its impact in the less-developed nation, where the price of labor is only $240 per week. The new isoquant will look like it does in question #5. With each (improved) truck still renting for $2000 per week, which technique will NOW be cost-minimizing in the "low-wage" country?
4.) What is the total cost of the technique that you've chosen in question #7 with the input prices specified there?
Total Cost = $_________
5.)As capital become more productive (due to technological advances), what will be the number of workers displaced (laid off) in the high-wage country where the price of labor (wage) is $500 per week?
For each ten tons of food harvested, ____ workers will lose their jobs
6.)As capital become more productive (due to technological advances), what will be the number of workers displaced (laid off) in the low-wage country where the price of labor (wage) is $240 per week?
For each ten tons of food harvested, ____ workers will lose their jobs

Philip responded:

With discrete optimization problems, one solution is to check all options.
A: 6*$500+3*$2000=$9000
B: 12*$500+2*$2000=$10000
C: 21*$500+1*$2000=$11500
D: 33*$5000=$16500
Therefore, technique A is cost-minimizing with total cost $9000.

The same approach for part 3 yields:
A: 6*$240+3*$2000=$7440
B: 12*$240+2*$2000=$6880
C: 21*$240+1*$2000=$7040
D: 33*$240=$7920
Therefore, technique B is cost-minimizing with total cost $6880.

Before the productivity of capital increased, twice as many trucks were needed.
Then, the costs for the techniques in the high-wage country were
A: 6*$500+2*3*$2000=$15000
B: 12*$500+2*2*$2000=$14000
C: 21*$500+2*1*$2000=$13500
D: 33*$5000=$16500
Therefore, technique C was cost-minimizing. 21 workers were employed for technique C per 10 tons of corn. The technological improvement causes a switch to technique A, which uses 6 workers. Therefore, 15 workers were laid off.

Similarly, in the low-wage country, the old costs were:
A: 6*$240+2*3*$2000=$13440
B: 12*$240+2*2*$2000=$10880
C: 21*$240+1*$2000=$9040
D: 33*$240=$7920
Therefore, technique D was cost-minimizing. Technique D used 33 workers but technique C only uses 21, so 12 workers are laid off per 10 tons of corn harvested.

Feedback:

Subject: Microeconomics

Someone asked:

I have to write a essay about the following question and am not sure what to do, or for sure what it is asking:

Consider Public policy aimed at smoking.
A) Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20 percent, by how much should the government increase the price?
B) If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years from now?

Philip responded:

A) Price elasticity of demand=(change in quantity demanded/quantity demanded)/(change in price/price). All quantities are expressed in absolute values here.
Solve .4=.2/(change in price/$2). We get a needed price increase of $1.

B) Since cigarettes are addictive, existing smokers are less price-sensitive than new smokers. As time goes on, there is more time for new smokers to be affected by the policy. Since 5 years of the policy will have more new smokers than 1 year of the policy, the policy will have a larger effect on smoking five years from now.

Subject: American History

Someone asked:

What was the main reason for the civil war in the united states?

Philip responded:

One of the triggers of the civil war was the secession of the Southern states. The primary reason that the Southern states seceded was slavery. Lincoln's election was an immediate cause of secession because he was from the anti-slavery Republican party. The Republicans did not want to allow slavery to spread.
After secession, the Confederate states seized federal property within their borders. The immediate trigger for the war was the Confederate attack on Fort Sumter. Lincoln wished to use military force to maintain possession of federal property. After Lincoln requested that the commander of Fort Sumter hold the fort, the Confederates attacked the fort and forced it to surrender. Afterwards, both sides mobilized armies and began the war.

Subject: US History

Someone asked:

What were the reasons why the anti-federalists opposed the ratification of the US Constitution?

Philip responded:

Anti-federalists were concerned that a president could potentially become a monarch and that the US Constitution would give too much power to the president.
Another objection was that the US Constitution took too much power away from the states.
Yet another objection that eventually resulted in the Bill of Rights was that the US Constitution may possibly allow the federal government to violate individual rights.

Subject: Basic Physics

Someone asked:

The function x=2cos[(3pi rad/s)t+pi/4 rad] gives the simple harmonic motion of a body. At t=9.7s what is the displacement?

Philip responded:

Wolfram alpha is a good online calculator:
http://www.wolframalpha.com/input/?i=2cos%283pi%29*9.7%2Bpi%2F4
Answer is -18.61.

Subject: Geometry

Someone asked:

I need help on determining the relationship between measures of given angles.

Philip responded:

Drawing various diagrams and observing which angles seem to be related also helps give you an intuition to back up your memorized knowledge.

Subject: Statistics

Someone asked:

a random sample of 37 eight-ounces servings of different jiuce drink has a mean of 86.8 calories and a standard deviation of 48.9 calories.
what is the 90% confidence interval is (round to a one decimal place as needed)
what is the 95% confidence interval is (round to a one decimal place as needed)

Philip responded:

You can also use an online calculator: http://stattrek.com/online-calculator/normal.aspx

For the 90% interval: to get the lower bound, you use the fact that the probability that the true mean calorie count is less than the lower bound is .05. Enter .05, 86.8, and 48.9/sqrt(37)=8.04 for cumulative probability, mean, and standard deviation respectively. This yields a lower bound of 73.6. The probability that the true mean calorie count is less than the upper bound is .95, so enter Enter .95, 86.8, and 48.9/sqrt(37)=8.04 for cumulative probability, mean, and standard deviation respectively. You get 100.0 as the upper bound. Thus, the 90% confidence interval for the true mean calorie count is (73.6, 100.0).

Similarly, for the 95% confidence interval you would enter .025, 86.8, and 48.9/sqrt(37)=8.04 for cumulative probability, mean, and standard deviation respectively to get the lower bound. Then you get 71.0. For the upper bound, enter .0975, 86.8, and 48.9/sqrt(37)=8.04 for cumulative probability, mean, and standard deviation respectively. Then you get 102.6. Thus, the 95% confidence interval for the true mean calorie count is (71.0, 102.6).

Subject: Geometry

Someone asked:

parrallel

Philip responded:

Also critical is the fact that the distance between one point on a paralleled surface and the closest point on the other surface is constant (this is in contrast with skew, which are two nonintersecting objects with nonconstant distances between them)

Subject: Physics (Mechanics)

Someone asked:

System shown in the figure is released from rest.Pulley and spring is massless and friction is absent everywhere.The speed of 5kg block when 2kg block leaves the contact with ground is(take spring constant=k=40N/m ang g=10m/s^2)
(answer that they give is 2.828m/s

Philip responded:

Note: sqrt(8) is approximately 2.828. Units for v here are m/s.

Subject: Statistics (College Intro)

Someone asked:

a box contains 3 red marbles and 7 blue marbles. four hundred draws are made at random with replacement EV for % of red marbles in the draws is

Philip responded:

I believe the other tutor read the question completely wrong.

Since there are 3 red marbles and 7 blue marbles, there are 10 total marbles. For every draw, the the % expected value of red marbles 30% (3/10) since each draw is identical due to replacement. Since all draws are identical, the replacement EV for % of red marbles in the draws is also 30%.

Subject: Statistics (College Intro)

Someone asked:

52 P 2

Philip responded:

The formula for N P K is N!/K!. 52 P 2 = 52!/50! = 52*51 = 2652.

Subject: Statistics

Someone asked:

An airline knows from experience that the distribution of the number of suitcases that get lost each week on a certain route is approximately normal with m = 15.5 and s = 3.6.

a) What is the probability that during a given week the airline will lose less than 20 suitcases?
b) What is the probability the airline will lose between 10 and 20 suitcases?

Philip responded:

Using a normalcdf calculator and entering 15.5 as the mean, 3.6 as the standard deviation, and 10.5 as x, we get .0824 for a. 10.5 is used for x since any amount of suitcases lost below 10.5 would round to 10 or below. A normalpdf calculator is available free online, part a is linked here: http://www.danielsoper.com/statcalc3/calc.aspx?id=53.
For part b, we will take the normalcdf for x=20.5 and subtract the normalcdf for x=10.5 to find the probability that the airline will lose between 10 and 20 suitcases. We get .9176 for normalcdf(15.5, 3.6, 20.5). Since normalcdf(15.5, 3.6, 20.5)-normalcdf(15.5, 3.6, 10.5)=.8352, we get .8352 for b.

Feedback:

Subject: Physics (Electricity and Magnetism)

Someone asked:

R1 = 8 Ω and R2 = 0.5 Ω are connected across a battery. The rate at which
heat is generated is the same whether they are connected in series or in parallel. What is
the internal resistance r of the battery?

Philip responded:

I am going to assume that the problem asks us to equate the heat generated by the resistors in both configurations and does not include the heat generated by the battery. By Ohm's law, V=IR. A formula describing power states that P=IV. Substituting V/R for I in the power expression gives us P=V^2/R. We know that the formula for resistance for resistors in series is R(effective)=R1+R2+R3. Then the effective resistance in the series circuit (the battery is always going to be in series with the resistors) is 8+.5+r=8.5+r. The formula for resistance for resistors in parallel is 1/R(effective)=1/R1+1/R2. Plugging in our values, 1/R(effective)=1/8+1/.5=2+1/8=17/16. Taking the reciprocal of both sides to isolate R(effective) yields R(effective)=16/17, which is the effective resistance of the combined resistors. Using the formula for effective resistance in series yields R(effective)=16/17+r, which is the total resistance for the entire circuit. We call the voltage of the battery V. Using V=IR, we find that, for the series circuit, we have V=I(8.5+r). We divide by (8.5+r) to get I=V/(8.5+r). For the second circuit, we have V=I(16/17+r). Isolating I yields I=V/(16/17+r). Using P=IV for both circuits (effective resistance of resistors only, circuit current) and setting the powers equal, we get V/(8.5+r)*(8.5)=V/(16/17+r)*16/17. Dividing by V yields 8.5/(8.5+r)=16/17/(16/17+r). Taking the reciprocal yields (8.5+r)/8.5=(16/17+r)/(16/17). Separating fractions yields 1+r/8.5=1+r/(16/17). Here, it is clear that there is no solution for r. This means that the rate of heat generation in both the series and parallel batteries will be never equal.

Feedback:

Subject: Linear Algebra

InstaEDU asked:

What is Linear Algebra?

Philip responded:

Linear algebra is the study of vectors and matrices. A vector is an ordered list of numbers, while a matrix is an ordered grid of numbers (or an ordered list of vectors). Vectors and matrices can be a convenient notation for systems of linear equations.


Subject: World History

InstaEDU asked:

Why study World History?

Philip responded:

World history contains many lessons that politicians and leaders today can learn from.


Subject: Physics (Electricity and Magnetism)

InstaEDU asked:

What is Physics (Electricity and Magnetism)?

Philip responded:

Physics (Electricity & Magnetism) is the study of charged particles and the magnetic fields they generate. Magnetic fields are descriptions of the total force that magnets and moving charges generate.


Subject: Basic Science

InstaEDU asked:

Why study Basic Science?

Philip responded:

Basic science is a helpful introduction to scientific principles that allows you to learn more advanced and specialized science courses more easily.


Subject: Geometry

InstaEDU asked:

Why study Geometry?

Philip responded:

Geometry is the foundation for more advanced math such as trigonometry.


Subject: Science

InstaEDU asked:

What is Science?

Philip responded:

Broadly defined, science is the creation and testing of falsifiable hypotheses. A hypothesis is falsifiable if it is possible to prove it is wrong. Scientists propose hypotheses about how the world works, and those that survive a long time without being contradicted gain acceptance.
Science often refers only to natural sciences such as biology, physics, and chemistry, as opposed to social sciences that study human behavior, such as economics and psychology.


Subject: ACT (science)

InstaEDU asked:

Why study ACT (science)?

Philip responded:

Doing well on the ACT can help you get into colleges that you want to go to.


Subject: Foreign Languages

InstaEDU asked:

Why study Foreign Languages?

Philip responded:

Knowing foreign languages allows you to communicate with more people and is also required for translation jobs.


Subject: SAT II US History

InstaEDU asked:

Why study SAT II US History?

Philip responded:

Doing well on the SAT II US History can help you get into colleges that you want to go to, as many prefer applicants who do well on SAT subject tests.


Subject: SAT II Mathematics Level 2

InstaEDU asked:

What is SAT II Mathematics Level 2?

Philip responded:

The SAT II Mathematics Level 2 is an hour-long 50-question standardized math college exam that tests math up to basic statistics and calculus. A calculator is required to take the test, and powerful calculators like the TI89 can be very helpful.


Subject: ACT (math)

InstaEDU asked:

Why study ACT (math)?

Philip responded:

Doing well on the ACT can help you get into colleges that you want to go to.


Subject: SAT (writing)

InstaEDU asked:

Why study SAT (writing)?

Philip responded:

Doing well on the SAT writing test can help you get into a college of your choice.


Subject: Algebra

InstaEDU asked:

Why study Algebra?

Philip responded:

At the K-12 level, algebra is a foundation for higher mathematics and allows one to solve many real-world problems. For example, algebra, in conjunction with trigonometry, is useful for measuring objects that are too large to easily measure directly.
At the college level, algebra is a powerful technique for solving natural questions such as "when are two polyhedra scissors-congruent?" (scissors-congruent means one can be cut into a finite number of pieces which can be pasted to make the other). It is also the basis of most of modern mathematics.


Subject: ACT

InstaEDU asked:

Why study ACT?

Philip responded:

Doing well on the ACT can help you get into colleges of your choice.


Subject: Engineering and Technology

InstaEDU asked:

Why study Engineering and Technology?

Philip responded:

Engineering and technology allow us to invent new things and design new products, as well as repair existing man-made objects.


Subject: SAT (reading)

InstaEDU asked:

Why study SAT (reading)?

Philip responded:

A good score on the SAT (reading) can help one get into college. Studying for the test is also a good way to improve general reading comprehension skills.


Subject: Physics

InstaEDU asked:

What is Physics?

Philip responded:

Physics has many branches, which include mechanics, the study of large objects, electricity and magnetism, the study of charge, optics, the study of light, thermodynamics, the study of heat, and particle physics, the study of subatomic particles. Energy is a unifying concept throughout physics.


Subject: Standardized Test Prep

InstaEDU asked:

Why study Standardized Test Prep?

Philip responded:

Standardized tests are useful because good performance on them proves that your skills are strong. They are easy for colleges and government agencies to evaluate. Good performance on standardized tests may be necessary for graduating high school and can be helpful for getting into graduate school or college.


Subject: Mandarin

InstaEDU asked:

What is Mandarin?

Philip responded:

Mandarin is a pictographic language that is spoken primarily in China and Taiwan.


Subject: SAT

InstaEDU asked:

What is SAT?

Philip responded:

The SAT is a set of college entrance exams.


Subject: ACT (reading)

InstaEDU asked:

Why study ACT (reading)?

Philip responded:

The ACT can help you show colleges your academic achievement.


Subject: SAT II

InstaEDU asked:

What is SAT II?

Philip responded:

The SAT II is a series of standardized tests that test specialized subjects. Many different subjects are offered, and many colleges prefer applicants with 2 (some colleges prefer 3) good subject test scores.


Subject: Probability

InstaEDU asked:

What is Probability?

Philip responded:

Probability is the study of random processes. Probability allows one to draw conclusions about possible results when confronted with a description of random processes.


Subject: Macroeconomics

InstaEDU asked:

Why study Macroeconomics?

Philip responded:

Macroeconomics guides government policies that keep the economy stable and successful, such as stimulus packages and anti-inflation policies.


Subject: Math

InstaEDU asked:

What is Math?

Philip responded:

Mathematics is the study of numbers, shapes, and equations. It is characterized by using logic to deduce theorems from assumed axioms.


Subject: US Government and Politics

InstaEDU asked:

Why study US Government and Politics?

Philip responded:

A knowledge of US Government and Politics can help us make the US government function better. For example, empirical evidence should be used to guide campaign fundraising rules and limits.


Subject: Physics

InstaEDU asked:

Why study Physics?

Philip responded:

Physics helps engineers design high-tech products. Furthermore, it is interesting to understand the fundamental workings of the universe.


Subject: Microsoft Excel

InstaEDU asked:

Why study Microsoft Excel?

Philip responded:

Microsoft excel is a useful tool for manipulating data. Sums, products, means, and standard deviations can be computed easily. As a result, it can also help you in probability computations.


Subject: English

InstaEDU asked:

What is English?

Philip responded:

English is a language spoken by people in the US, UK, Australia, and Canada.


Subject: SAT II Chemistry

InstaEDU asked:

Why study SAT II Chemistry?

Philip responded:

Doing well on the SAT II Chemistry can help you get into college, especially if you are considering a chemistry-heavy major.


Subject: ACT (English)

InstaEDU asked:

What is ACT (English)?

Philip responded:

The English ACT is part of a college entrance exam.


Subject: SAT II

InstaEDU asked:

Why study SAT II?

Philip responded:

The SAT II is useful for getting into college, as 2-3 good SAT II scores, especially ones that are relevant to your possible majors, can strengthen your application.


Subject: World History

InstaEDU asked:

What is World History?

Philip responded:

World history is the general study of the past.


Subject: US History

InstaEDU asked:

Why study US History?

Philip responded:

It is interesting to know the story of the creation and growth of the world's richest country, and the story contains many lessons that are useful for present-day policymakers and politicians to consider.


Subject: Mandarin

InstaEDU asked:

Why study Mandarin?

Philip responded:

Mandarin is one of the most commonly spoken languages, so it is useful to know.


Subject: Economics

InstaEDU asked:

Why study Economics?

Philip responded:

Knowledge of economics helps governments stimulate depressed economies and control inflation. Furthermore, the economic perspective is useful in solving many problems, such as crime and climate change.


Subject: SAT (reading)

InstaEDU asked:

What is SAT (reading)?

Philip responded:

The SAT reading exam is a multiple-choice college admissions standardized test that tests reading comprehension. It consists of three separate sections: 2 25-minute sections and 1 20-minute section.


Subject: Music Theory

InstaEDU asked:

What is Music Theory?

Philip responded:

Music theory is the study of way to read and write music.


Subject: SAT II Biology E/M

InstaEDU asked:

Why study SAT II Biology E/M?

Philip responded:

2-3 SAT II subjects tests with good scores can help you get into college. The Biology test is especially helpful for biology-heavy majors.


Subject: ACT (writing)

InstaEDU asked:

Why study ACT (writing)?

Philip responded:

A high score on the ACT, which has a mandatory writing component, can help you get into colleges.


Subject: Chemistry

InstaEDU asked:

What is Chemistry?

Philip responded:

Chemistry is the study of interactions between atoms.


Subject: Computer Software

InstaEDU asked:

Why study Computer Software?

Philip responded:

Computer software is the method that humans use the harass the huge computational power of computers. A knowledge of computer software allows you to fix software that is not working well and design new software to meet people's needs.


Subject: Standardized Test Prep

InstaEDU asked:

What are Standardized Test Prep?

Philip responded:

Standardized tests are one standard test that is given to many students. These tests are usually used for assessing students' aptitude, especially relative to other students.


Subject: Film and Theater

InstaEDU asked:

Why study Film and Theater?

Philip responded:

Studying film and theater allows you to enjoy film and theater at a deeper level.


Subject: Probability

InstaEDU asked:

Why study Probability?

Philip responded:

Studying probability allows one to understand random processes such as card shuffling. For example, probability tells us that it takes 12 shuffles before the probability of any set of deck distributions can be more than 1% of its expected value for a fully random deck (and a set of deck distributions can correspond to the set of deck distributions that results in a player winning a card game). So next time you are playing cards and feel your deck is not shuffled properly, it's probably because it hasn't been shuffled enough.
Knowing probability is also vital to understanding statistics.


Subject: SAT II US History

InstaEDU asked:

What is SAT II US History?

Philip responded:

The SAT II US History is collegeboard's US history test.


Subject: Diagonalizable Matrices

InstaEDU asked:

Why study Diagonalizable Matrices?

Philip responded:

Diagonalizable matrices are have many convenient properties and they are useful because every matrix can be approximately to arbitrary precision with a diagonalizable matrix.


Subject: Subtraction

InstaEDU asked:

What is Subtraction?

Philip responded:

Subtraction is when you have a quantity that you want to take out from another quantity.


Subject: Remainders

InstaEDU asked:

Why study Remainders?

Philip responded:

Remainders are the foundation of much number theory (modular arithmetic).


Subject: Polar Coordinates

InstaEDU asked:

What are Polar Coordinates?

Philip responded:

Polar coordinates represent a point in 2D space by a distance and direction from the origin.


Subject: Health Care

InstaEDU asked:

Why study Health Care?

Philip responded:

There are three primary issues that health care systems around the world face in some degree and combination: some people not having insurance, high costs, and long queues. Since health care is often expensive, it is commonly funded by health insurance. Note that insurance companies are allowed to choose both a price and quantity of insurance to offer consumers. Like many types of insurance, there are multiple interesting issues. Firstly, there is the moral hazard problem, which is especially important for directors of insurance firms to be aware of. The existence of insurance, which makes resolving a health problem relatively cheap, can lead insured individuals to engage in unhealthy behaviors like smoking. Moral hazard can be ameliorated by carefully observing individuals who act in healthy manners and rewarding them. Adverse selection, a situation where only high-risk individuals purchase insurance, is another issue that the company faces. As a result, companies may make efforts to tell high- and low- risk individuals apart. Both pooling (offering the same contract to all types of individuals) and separating (offering different contracts and allowing high- and low- risk individuals to self-select into contracts) strategies exist when risk is observable only by individuals. From the policymaker's perspective, it is important to know that no equilibrium is guaranteed under this sort of asymmetric information and the nonexistence of an equilibrium constitutes market failure.
A further economic observation is that individuals with observably different levels of risk will be charged based on their level of risk and offered nearly full, nearly actuarially fair insurance (the deviation from full and actuarially fair stems from the operating costs of the insurance company), assuming a relatively competitive insurance industry. Policymakers and voters should be aware that this is a better situation for society than a situation with asymmetric information. Under asymmetric information, it is impossible to pool low- and high-risk individuals in competition because if existing firms are pooling, there is always an incentive for a new firm to skim off the low-risk individuals by offering a cheaper contract with lower insurance coverage, leaving the existing firms with only high-risk individuals and thus losses. If an equilibrium exists under asymmetric information, high-risk individuals still are fully insured but low-risk individuals are not (fully insurance contracts cannot be offered on a low premium because then high-risk individuals would pile into that contract and cause the firm to lose money). Since individuals gain utility from extra insurance, a policy that bans contract discrimination based on risk (a ban on discrimination based off pre-existing conditions) does not help high-risk individuals (who are insured fully either way) and harms low-risk individuals (this policy forces companies to act as if they can't tell high- and low-risk individuals apart).
Another bad incentive that people who pay doctors must be careful about is the incentive doctors have to prescribe excessive services if they get paid per service. Another interesting thing companies can do against a moral hazard problem on behalf of their consumers is to offer them preventative care. A problem that public health care providers often face is excessive queues due to free treatment and not enough supply. There is also often a shortage of organs if selling organs is illegal, and black markets can also form. Finally, there is the moral hazard problem of people not buying insurance and hospitals needing to treat them anyways, forcing the public to pay for their care. A potential solution is forcing everyone to buy insurance.


Subject: Executives

InstaEDU asked:

What are Executives?

Philip responded:

An executive is a branch of government that is responsible for implementing laws.


Subject: Oligopoly Effects

InstaEDU asked:

Why study Oligopoly Effects?

Philip responded:

It is useful to study the effects of oligopolies for the purposes of both running and regulating them. A director of an oligopolist businesses must consider the reactions of his rivals when making his own decisions. A policymaker should know when oligopolies behave in competitive manner, which is conducive to overall economic well-being, and when they act with a more monopolistic manner, which causes deadweight losses (economic damage). For example, collusion among oligopolists leads them to act like a monopolist and causes high prices. If oligopolies will cause deadweight losses, the deadweight losses can potentially be prevented or reduced by preventing oligopoly formation, breaking up oligopolies, outlawing collusion, or regulating.


Subject: Excise Taxes

InstaEDU asked:

Why study Excise Taxes?

Philip responded:

Excise taxes (taxes on specific goods) are economically useful for several reasons. Firstly, they can be used to correct a negative externality associated with a good. A negative externality is a harmful effect that a good has on third parties (for example, secondhand smoke from cigarettes can harm nonsmokers). In addition, excise taxes can be placed on goods with particularly price-inelastic (insensitive) demands to minimize deadweight losses (harm to the economy caused by the tax). Taxes on price inelastic goods cause less deadweight loss since deadweight loss stems from units of the good that consumers would purchase and suppliers would supply without the tax that do not get produced and consumed due to the tax.


Subject: Foreign Policy

InstaEDU asked:

Why study Foreign Policy?

Philip responded:

A knowledge of foreign policy can help a diplomat advance the interests of his or her nation. A good foreign policy can ensure economic prosperity and peace.


Subject: Theocracy

InstaEDU asked:

Why study Theocracy?

Philip responded:

It is useful to understand Theocracy so we can better deal with theocratic governments such as Iran's.


Subject: Martin Luther King Jr.

InstaEDU asked:

Why study Martin Luther King Jr.?

Philip responded:

Martin Luther King Jr. helped African Americans achieve many civil rights victories. He was also a writer with many ideas about how governments and societies should run. Studying MLK helps us determine the merits of his approach as well as potential ideas for reforming our society.


Subject: Deregulation

InstaEDU asked:

Why study Deregulation?

Philip responded:

Often, regulations can impede economic prosperity by placing too many restrictions on business. However, some restrictions on business are good for the well-being of the nation and the economy. We should determine which regulations are harmful and which are helpful so we can deregulate in a way that helps society.


Subject: Freedom of the Press

InstaEDU asked:

Why study Freedom of the Press?

Philip responded:

While freedom of the press can be a key regulating mechanism of a democratic government that expresses the voice of the citizens, it can also be potentially dangerous. For example, the nation may be jeopardized if the press is allowed to print state secrets. An understanding of freedom of the press is critical to striking a balance between freedom of and limitations of the press.


Subject: Native American Wars

InstaEDU asked:

Why study Native American Wars?

Philip responded:

Since many feel that Native Americans should receive compensation for wrongs that they suffered during history, it is important to know their history. Native American Wars were the site of many atrocities committed both by and against Native Americans.


Subject: OPEC

InstaEDU asked:

What is OPEC?

Philip responded:

OPEC is an oil cartel among several of the world's oil producers. By setting artificially low quotas (allowed production amounts) for its members, it artificially reduces world oil supply. As a result, oil prices rise artificially high, resulting in higher profits for OPEC oil producers.


Subject: Legislatures

InstaEDU asked:

Why study Legislatures?

Philip responded:

It is useful to study legislatures in different times and places (as well as in different theories) to guide the structuring of our legislature. If we have a good understanding of how legislatures work, it can help us structure our legislature so that it functions in a socially desirable manner.


Subject: The War of 1812

InstaEDU asked:

What is The War of 1812?

Philip responded:

The War of 1812 was a war between America and Britain caused by Britain kidnapping American sailors and forcing them to work for their navy, as well as various other reasons.


Subject: Vietnamization

InstaEDU asked:

What is Vietnamization?

Philip responded:

Vietnamization was the effort to improve the South Vietnamese army's capabilities so it could fight the North Vietnamese better.


Subject: Environmental Policy

InstaEDU asked:

Why study Environmental Policy?

Philip responded:

Due to the disastrous effects of environmental degradation (such as global warming, acid rain, and pollution), it is useful to study environmental policy so we can design environmental policies that give consumers and businesses incentives to protect the environment that cause minimal economic harm.


Subject: The Strategic Defense Initiative

InstaEDU asked:

What is The Strategic Defense Initiative?

Philip responded:

The Strategic Defense Initiative was Reagan's plan to protect the US from strategic nuclear missiles. It was to use very expensive new space-based technology. It led to the Soviet Union running out of money for the arms race and trying to achieve peace as a result.


Subject: John Kennedy

InstaEDU asked:

Why study John Kennedy?

Philip responded:

Kennedy's plans, such as putting a man on the moon, as well as their eventual implementation, shaped the US at the time of the Cold War.


Subject: Woodrow Wilson

InstaEDU asked:

Why study Woodrow Wilson?

Philip responded:

Wilson was the first to implement an organization similar to the United Nations and also led the US into WWI under a strong ideology, so it is interesting to study him.


Subject: The Committee System

InstaEDU asked:

Why study The Committee System?

Philip responded:

A study of the drawbacks and advantages of the Committee System can help us decide whether to reform political decision-making for a more desirable politics.


Subject: Executives

InstaEDU asked:

Why study Executives?

Philip responded:

The study of executives around the world and throughout history can help us determine what powers and restrictions executives in our modern society should have.


Subject: PSAT (reading)

InstaEDU asked:

Why study PSAT (reading)?

Philip responded:

The PSAT is useful for preparing for the SAT and getting National Merit Scholarships.


Subject: Adding and Subtracting Rational Expressions

InstaEDU asked:

Why study Adding and Subtracting Rational Expressions?

Philip responded:

Adding and subtracting rational expressions is useful for more advanced mathematics such as calculus.


Subject: Government

InstaEDU asked:

Why study Government?

Philip responded:

Knowledge of how our government functions is important for participating in political life as a citizen.


Subject: Linear Momentum

InstaEDU asked:

Why study Linear Momentum?

Philip responded:

Linear momentum allows us to study collisions in one dimension and lays the foundation for studying collisions in two and three dimensions.


Subject: Current, Resistance, and Power

InstaEDU asked:

What are Current, Resistance, and Power?

Philip responded:

Current is the amount of charge per time that passes through a substance. Resistance is the amount the substance impedes the flow of current. Power is the amount of work per unit of time that something performs.


Subject: Andrew Jackson

InstaEDU asked:

What is Andrew Jackson?

Philip responded:

Andrew Jackson was a president of the United States.


Subject: Parametric Functions

InstaEDU asked:

Why study Parametric Functions?

Philip responded:

One interesting use of parametric functions is to describe the position, velocity, and acceleration of an object in multiple dimensions with respect to time.

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