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Explain moral hazard and adverse selection problems. Discuss a few tactics that managers can use to overcome these problems.
Explain how the method used to determine the profit- maximizing level of output in product markets (i.e., MR = MC) can be applied to the labor market to determine the most profitable number of employees a firm should hire.
How much more output each year will have to be produced in the world
Suppose that the production function is Y = A K1/4L3/4.What is the marginal product of labor (MPL)?
President Chavez Venezuela said he is going to not sell oil to the United States. What will happen to the price and quantity of gasoline in the United States?
What is a typical indifference curve for the case in which the marginal utilities of both goods are positive and the marginal rate of substitution of hamburgers for Cokes is diminishing. Explain the relationship between the indifference curve
Illustrate what does this mean regarding the consumer surplus of the "last person" shown on the demand curve.
If the gov spends $10 million giving subsidies to certain types of companies, is that money added to the category of G. What about if the gov gives a grant to a company. What about transfer payments made by the gov to the poor.
Suppose Cypress River estimates a linear trend without accounting for this seasonal variation. What effect would this omission have on the estimated sales trend?
A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..
Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. How might "politics" complicate fiscal policy How might expectations of a near term policy reversal weaken fiscal policy based on changes in tax rates
Suppose you are manager of customer service department at a bank and you want to hire customer service representatives for a newly opened bank branch.
Financial markets make it possible for those who have saved money to earn a reward by providing the financing for business formation and expansion. Business owners can seek financing through the stock market, the bond market, or the banking sector..
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