04 Jun Question A.The use of professional and independent buyer-agents
Question
A.The use of professional and independent buyer-agents to help individuals purchase automobiles or houses is becoming a more common phenomenon. Given the conflict of interest facing the physician-agent, why do we not see greater use of a buyer-agent who is retained by the patient?
B.Consider the agency relationship in malpractice cases under a contingency fee system. The plaintiff (party that sues) typically pays his or her attorney about one-third of any monetary damages that are awarded (and nothing if the case is lost). Supporters of this system claim that client and attorney share a common goal of maximizing the award. Is there, however, an inherent conflict between attorney and client in the amount of attorney time and other resources that are devoted to the case?
FIGURE 11-2 Interaction of Health Insurance and Employee Wage
C. Using Figure 11-2 (on page 213 of your textbook):
Calculate an initial labor market equilibrium (wages and employment) determined by the demand and supply of labor.
Indicate the wage and employment impacts of a health insurance policy that costs $2 per hour to employers and is worth $1.50 per hour to the workers.
Indicate the wage and employment impacts of a health insurance policy that costs $1.50 per hour to employers and is worth $2 per hour to the workers.
D. Using Figure 11-2 (on page 213 of your textbook), indicate the wage and employment impacts of a health insurance policy that costs $2 per hour to the workers and is worth exactly $3 per hour to the workers. Why do your answers to exercises 2 and 4 differ?
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