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Suppose employees pay a bond of $1,000 to an employer. The gain from shirking is $400. Monitoring devices have been installed so that there is a 50% chance of being caught if you are shirking. The company is considering the installation of additional monitoring devices to increase the chance of catching a shirker to 100%. They feel this is needed to deter all shirking. What is your recommendation to the company? Explain.
Assume that a cake is being divided in following way among two players. Each player writes down a number from zero to one on his piece of paper.
The CPI for Zippa Republic was 111.9 in December 2007, 114.6 in December 2008, and 116.2 in December 2009.What do these numbers tell you about the price level in these three years?
Consider the following production function: Y = AK^aL^(1-a), where Y is units of output, K is units of capital, and L is units of labor. Both A and are constant parameters characterizing the production technology.
Studies have concluded that the dead weight loss of monopoly power in the United States is less than 0.5 percent of GNP. From your knowledge of the determinants of the dead-weight loss, explain why such a small figure is plausible.
What do we mean by stocks and flows in macroeconomic theory?
1. consider the following policies each of which is aimed at reducing violent crime by reducing the use of guns.
Base on your research; Discuss the identified risks and the tools that organizations could use to mitigate these risks.
What factors led to the mortgage default crisis How did mortgage defaults affect banks involved in mortgage lending and mortgage investing Securitization TARP What do these mean How did mortgage-backed securities spread losses during the mortgage ..
The problem belongs to Economics and the problem is explains the importance of government regulation of financial markets and the subsequent effect on global financial crisis.
Suppose wheat is produced by a farmer and if intead of some quantity of wheat farmer starts producing some sugercane then that unit of wheat farmer has to sacrifice for the prodution of sugarcane ,this is known as the opportunity cost.
The concepts of demand elasticities, analysis of market structures, pricing, and barriers to entry. Discuss how this type of knowledge can provide a better understanding of how firms create and sustain competitive advantage. In your answer, make refe..
in the free market, as does each unit of other goods. Down and Out are eligible to receive a public housing unit, which provides them with an apartment that would cost them $1000 per month in the free market at a rent of $500 per month. Draw their..
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