Econ 256 Final

2. Why do economists broadly regard median income as a better measure of a typical Americans well-being than mean income? Dfiodifaje 3. Why do the United States, and many an(prenominal) other counties, attain antitrust laws on the books? Whats so harmful virtually oligopoly that warrants an entire body of law? The United States and many other countries have antitrust laws on the books to protect their consumers in their different markets. Having the abilities to both elevation and lower prices are the reasons that oligopolies are so harmful. . Two consumers go to the policy participation to purchase some life indemnity. James is a stag party and a law officer who races motorcycles in his spare time. Kathy is a nonsmoking car and a librarian who likes to make quilts in her spare time. The insurance company knows that both consumers are 40 years old, but the company has no information about occupations or hobbies. How does the private information in this locating create an ad verse-selection problem? How could the insurance company lessen this problem?Without conditioned the background information on the potential clients, insurance companies are without the king to call in that while James is risking his life as a police officer, he is also a smoker and racer. Hes position his life on the line and still increasing the risk of injuries. The insurance should have a line on their application that asks for applicants for their occupation, whether they are smokers or if they drink, and lastly what they enjoy doing in their spare time.With having this information, the company can see what each of the individuals really needs insurance-wise. 6. Jane works part-time and earns $12,000 per year. Because she is below the indigence line, she also earns $4,000 in various welfare benefits. Suppose she is offered a unused job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits. This is what is known as a notch. Explain what is happening with Jane and how could we modify the system to steal the notch.