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Aaron and John, nine-year-old pupils, travel about two kilometers to school on bicycle. Aaron's bicycle has broken down and he has consequently missed several classes. John has two bicycles and he is willing to sell one to Aaron. John and Mr Smith, Aaron's Father, agree that John will sell one of his bicycles to Aaron and that Aaron will give R500 to him in full exchange.
Discuss whether the above scenario complies with all the requirements for the formation of a valid contract?
Some have argued that taxing a price searcher with a lump-sum tax (tax that is the same regardless of level of current production) and then using the tax proceeds to subsidize that producer’s output on a per-unit basis would reduce the efficiency los..
Is there a difference between the moral hazard and principal-agent problems? If yes, explain the dif- ferences and give an example of a situation where one of them exists without the other. If there is no difference, argue this is one and the same pr..
During the procurement planning step of the procurement process preaward phase, the buyer should consider relevant constraints. Describe at least two constraints a buyer might encounter in the procurement planning step for pricing contracts.
How should your assets be reallocated to retain your original risk proportions?
Using the National Income Account, and graphing the market for loanable funds, Draw the Demand and Supply curve for loanable funds such that the equilibrium interest rate is 3% and the equilibrium quantity of loanable funds is $10 trillion. Describe ..
Why are entrepreneurs willing to supply goods and serices for consumers at attractive price - Is it because they care personally about the consumers?
Do architects have a responsibility to our society, or should they be able to design whatever they want?” Obviously, architects must design buildings that are safe for people to live in, but what about size, shape, appearance, and materials? Artists ..
Suppose the government is concerned that research assistants already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal?
In 1992, thirst Bush administration was worried about a lingering recession. The administration announced that households would receive a reduction in their taxes for the year 1992. However, this was not accompanied by a reduction in tax rates, and t..
Use annual cash flow analysis with an 8-year analysis period and a 5% interest rate to determine which alternative should be selected if their annual operating costs are the same:
Using the same production function as in question 4 {ie: q = (K^1/2 + L^1/2)^2} suppose that the firm is now operating in the long-run. Solve for the long-run cost function (i.e. total costs as a function of input prices and output).
Expand his shop in that way allowing more customers to be served on a Saturday morning?
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