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Which of the following is an example of adverse selection?
A safe driver taking greater risk in a rental car than his own car.
A terminally ill person purchasing life insurance.
An employment contract encourages little effort on the part of employees.
All of the above
Ilustrate what is the market price and level of each firm's output in the short run. How much profit does each firm make.
Important determinants of the demand for workstations and must therefore be included in the study. How would you respond to this implication.
"Which side of the market, supply or demand, that bears the burden of a tax on a good or service depends upon the relative supply and demand:"
If the firm needs the service of these machines for an indefinite period also no technology improvement is expected in future machines.
Suppose the demand and supply for wine within the U.S. is: Suppose the demand and supply for wine in the rest of the world (R.O.W.) is: Calculate the deadweight loss if the U.S. imposes a tariff of 25 cents per bottle of imported wine.
q. assume that capital goods are on the vertical axis of a production possibilities graph and that consumer goods are
The following is information from the national income accounts for a hypothetical country: Net exports? Government taxes minus transfers? Disposable personal income? Personal saving?
If a monopolist is producing a level of output at which demand is inelastic, the firm is not maximizing profits, and increasing output will decrease total revenue.
If a company or municipality requests the terminating of a pension in bankruptcy, the court first has to determine that the company/municipality is otherwise insolvent. The company/municipality does not get to decide that for themselves, and they do ..
Distinguish between liberal economics and conservative economics. Why is macroeconomics an inherently political subject? Summarize the problems that can be created by rapid inflation. How can inflation become self-perpetuating?
Assume you have $10 to spend on either apples or chocolate. The price of a pound of apples is $3/pound and the price of chocolate is $5/pound. Graph the consumption possibilities curve. What is the opportunity cost of the 1st pound of chocolate? What..
If interest rates could be deducted from income, would an investor change his/her decision based on question 1.
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