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1. For each of the following purchases, say whether you would expect the degree of imperfect information to be relatively high or relatively low: a. Buying apples at a roadside stand b. Buying dinner at the neighborhood restaurant around the corner c. Buying a used laptop computer at a garage sale d. Ordering flowers over the Internet for your friend in a different city
2. Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate the traits they are seeking in a new employee?
3. Why is it difficult to measure health outcomes?
One of the central questions that society must answer regarding medical care is: What is the optimal mix of medical care expenses? Which of the following activities involve Mary playing a game of chance? Which of the following is an example of a game..
This means that in the particular year the economy produced no capital goods at all." Do you agree. Why or why not? Explain: "Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zer..
Sketch a demand curve that is unit elastic for a price change between $9 and $11. Assume that the quantity demanded is 110 when price is $9. You’ll have to determine the quantity demanded when price is $11.
What would be additional effects follow from this initial effect. What is the total effect of the tax cut on aggregate demand.
Why is technology such an important part of the labor market? Do you think technology makes workers more or less productive and how does it relate to their wages?
Consider an individual whose utility function is U = X0.5Y0.5. If she consumes 3 units of X and 4 units of Y, then some level of utility will be experienced. If the individual instead consumes 2 units of Y, how much of good X must she consume in orde..
Joy Land Toys, a toy manufacturer, is experiencing quality problems on its assembly line. How many inspectors should the firm hire?
Derive and plot Hugo"s Engel curve for donuts. Explain how much does his weekly budget have to rise for Hugo to buy one more donut per week.
What is the formula for total costs of a particular service or system? Relate this formula to the management of medical systems, providing at least two specific examples of applications
Trace the development of the labor theory of value from Adam Smith through David Ricardo to Karl Marx. What was the major contribution of each of the three economists to the development of the labor theory of value? What were the principles problems ..
The banks hold no excess reserves, Illustrate what will happen to the total money supply. How did you reach your answer.
What would you expect the Forward Rate to be between Japanese Yen and British Pounds, one year from now?
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