Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Explain the moral hazard problem and the adverse selection problem. Describe the difference between them, and discuss instances where these problems create difficulties for businesses.
Note that the answers to the discussion question fall under assymmetric information. I wanted to introduce these topics as it relates to public goods and the economy, since in the real world you'll see more cases of moral hazard and adverse selection than a perfectly competitive market. In any case, you essentially need to read that portion of chapter 17 or google it, it will not be on either exam.
In 2010 the Macondo well drilled by the Deepwater Horizon in the Gulf of Mexico blew out, spilling ~ 5 million barrels of oil into the Gulf over 87 days. Calculate the energy content of the spilled oil in joules or suitable multiples.
There are many economists that cringe at the words: oligopoly and free market together. To them, it is an oxymoron, unjust and plain down 'wrong'. Why do you believe that is the case? Isn't an oligopoly market structure 'ok' for a free market/ capita..
Examine any foreign currency of your choice (preferably one from an emerging market), and provide an analysis of that currency against the U.S. dollar over the 5-year period
a) Describe the variousrivalries depicted in this scenario( use examples from the casestudy above to validate your conclusion), and b) Then use the five forcesframework to analyze the industry.
Consider a MONOPOLIST that vents an ozone reducing chemical into the atmosphere as a consequence of their production activities. Is this outcome efficient? Explain with the help of a diagram. Does the monopolsit have an incentive to reduce their poll..
Assume our typical Cobb-Douglas production function, in per capita terms,y=Ak^(1/3).Also assume capital accumulates such that change in kt+1=Sy-dk. What is the solution of the Solow model for consumption per person in the steady state, c*=C*/L*? How ..
From 2003 to 2008, Eastlandia experienced large fluctuations in both aggregate consumer spending and disposable income, but wealth, the interest rate, and expected future dispensable income did not change. What is the aggregate consumption function?
Explain fully how a tax or subsidy affects the market. Explain how higher taxes do not necessarily raise more revenue as demonstrated by the Laffer curve.
If the present yield to maturity for this bond is 8%, calculate the current price of the bond using annual computing. Use annual analysis.
Assume that the inverse demand function for a two period depletable resource is P =24 – 0.2q and the constant marginal cost of supplying it is $6 (a = 24, b = 0.2, c = 6). If 60 units are to be allocated between two periods, how much would be allocat..
Externalities. Consider the example of the perfectly competitive steel firm from class. The firm takes the market price p = $35 (per unit of steel) as given and chooses quantity q (units of steel) to maximize its profits. Determine the market level o..
OPEC successfully raised the world price of oil in the 1970s and early 1980s, primarily due to:
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd