Albert had a terminal illness which required almost constant nursing care for the remaining two years of his estimated life, according to his doctor. albert had a life insurance policy with a face amount of $100,000. albert had paid $25,000 of premiums on the policy. the insurance company has offered to pay him $80,000 to cancel the policy, although its cash surrender value was only $55,000. albert accepted the $80,000. albert used $15,000 to pay his medical expenses. albert made a miraculous recovery and lived another 20 years. as a result of cashing in the policy: albert must recognize $55,000 of gross income, but he has $15,000 of deductible medical expenses. albert must recognize $65,000 ($80,000 – $15,000) of gross income. albert must recognize $40,000 ($80,000 – $25,000 – $15,000) of gross income. albert is not required to recognize any gross income because of his terminal illness. none of these.

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

In a chapter 7 bankruptcy, a debtor:

What is the correct percentage of texas teachers charged with ethics violations each year?