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Economists have long argued that, due to moral hazard problems, that "bailing out" firms such as banks (the S&L crisis), brokerage firms (Bear Stearns, Drexal Burnham...) and nations (Perhaps Greece in the future and the earlier Mexican Currency Crisis) may be bad idea.
2-a-i. Explain their difficulty with this concept of "Bail Out" in accordance with moral hazard concerns.
What is the moral hazard ? What is one possible remedy for this moral hazard problem (what are the good and bad points of this remedy)?
2-a-ii. Explain a problem "Bail Outs" create with adverse selection. What is adverse selection? What is one possible remedy for this adverse selection problem (what are the good and bad points of this remedy)?
Consider this scenario. You work for a five star international hotel. You are responsible for training junior employees about the appropriate style and layout of documents.
In 2010, Smileytown consumed 50,000 tubes of toothpaste. In 2011, toothpaste consumption rose to 62,000 tubes. Calculate the percentage change in toothpaste consumption.
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imagine an economy consisting of 1000 members. there is one produced good corn which all like to consume. corn is
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irrigation improves the yield of strawberries per acre measured in pints according to the fucntion s -w-22 50 where s
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