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In knowing about the regulations on executive pay (in the narrow field of banking) to limit moral hazard, maybe consequently creating a larger problem of adverse selection. Apply your knowledge of these topics and the larger set of knowledge of incentives, rationality, etc to debate this topic of moral hazard and adverse selection in the economy.
Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $18,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) t..
Global outsourcing has cost the U.S. economy far more than one million jobs since 2001, or somewhere between 15 and 35 percent of the total decline in employment since the onset of the 2001 recession. What will it likely do to the overall level of U...
Considers a monopolist with the following demand curve: P=1000-10Q. The monopolist faces MC=AC=100. Solve for the profit-maximizing level of monopoly output, price, and profits. Suppose a potential entrant is considering entering, but the monopolist ..
Do higher saving rates affect longrun economic growth? Explain. Do higher investments in research and development affect longrun economic growth? Explain. Explain with the help of a graph how the efficiency wage might cause unemployment.
Who is the winners and losers from using corn to produce ethanol (gasoline)? Identify some of the unintended consequences of using corn to produce ethanol (gasoline).
A monopolist's demand function is P = 1624 - 4Q, and its total cost function is TC = 22,000 + 24Q -4Q2 + 1/3 Q3, where Q is output produced and sold. G) The monopolist should shut down when price is equal to or lower than?
A U.S.-based MNC imports 30 percent of its supplies from Europe. Exports to Europe, which are invoiced in Euros, account for approximately 50 percent of its revenues. Explain how the MNC can reduce its economic exposure to exchange and interest rat..
What is the impact of World Aggregate Supply (WAS) on the trade deficit and domestic employment? Referring to the Aggregate Supply and Aggregate Demand model (AS/AD) and the material in Chapter 11 what challenges does structural stagnation pose for m..
Assume a firm has just released a large advertising campaign that turns out to be highly successful. Assume the costs have already been included in the analysis. Explain what happens to the firm. Be sure to talk about equilibrium price and quantity f..
Briefly describe cost-benefit analysis. Demonstrate understanding by applying the concept to an assessment of an immunization program.
Why is their a growing disparity between the rich and poor in the US? What are some of the reasons for this and what should the government do to bring about growing equality with income? Do we as citizens have an ethical responsibility to help the po..
Which of the following statements about marginal utility is correct?
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