Essay 1 (minimum 750 words, 3 pages) answering the following:
Suppose you were given a choice to select from a menu of items in your employee benefits package. The menu might include medical coverage ($500 deductible), life insurance equal to a year's salary, vacation time based on length of employment with the company and retirement pay equal to 8 percent of income. Comment on how such a "flexible benefits package" would affect your preference between higher wages and more benefits. Use the theory of consumer behavior in your answer.
Suppose you were given a choice to select from a menu of items in your employee benefits package. The menu might include medical coverage ($500 deductible), life insurance equal to a year's salary, vacation time based on length of employment with the company and retirement pay equal to 8 percent of income. Comment on how such a "flexible benefits package" would affect your preference between higher wages and more benefits. Use the theory of consumer behavior in your answer.
Essay 2 (min. 750 words, 3 pages) answering the following:
What warnings would you give forecasters in using statistical demand equations for estimating consumer demand? How can the problems associated with using static equations in a dynamic world best be dealt with? Elaborate.
What warnings would you give forecasters in using statistical demand equations for estimating consumer demand? How can the problems associated with using static equations in a dynamic world best be dealt with? Elaborate.
