Assignment:
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.
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.