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Suppose that there are two national football leagues: The Time League and The Bonus for Win League. The players have private information about their effort. In The Time League, players receive a fixed wage based on the time they spend practicing and playing matches. In The Bonus for Win League, the players are paid one wage for a loss, a higher wage for a tie, and the highest wage of all for a win. Describe the moral hazard and adverse selection problems in these two leagues. Which league best addresses these problems?
Suppose a freeze in Florida wipes out 20% of the apple crop. How will this affect the equilibrium price and quantity of pear Assume that the apple and pear are substitute to each other.
The cup is placed over the pill and as the cup is pressed down, the pill is split into pieces which are contained inside the cup. Because the cup is above the pill, persons can see how the pill is cut and keep the pieces contained.
Candidate A is running for president of the student government at a large university. The proportion of voters who favor the candidate is 0.8. A simple random sample of 100 voters is taken. a. What are the expected value, standard deviation, and sh..
a. Calculate net exports. b. Use the expenditure approach to calculate GDP. c. Use the income approach to calculate GDP. d. Calculate net domestic product (at factor cost). e. Calculate net domestic income (at market price..
Professional sports leagues often have salary caps that limit the amount individual teams can pay players. Using the prisoner's dilemma game, explain why such a restriction might make the team owners better off.
What is meant by this statement and by the concept of land reform? Give some examples of supportive policy measures that might accompany land reform.
If Eubank is holding no excess reserves, what must the required reserve ratio be Refer to Exhibit 0046. Assume the required reserve ratio. If Stu Dent deposits $10,000 in cash into his checkable deposit account, how much will Eubank now have in ca..
At what level of confusion (measured by the number of confused students) is a question from a confused student socially efficient?
Prepare the general journal entry to record the cash payment for the purchase assuming the discount was forfeited and the net method of recording purchase discounts is used.
Miguel is a farmer who produces oats. The oat market is a pure competition market. Miguel is now making choices in the short run. The going rate for oats is currently $24 per unit. The total cost function is as the table above shows. What is the p..
Suppose that the price of apples falls to $12 per box, but the wage rate remains at $200. Now, live happley should hire? (1,2,3,4,5 workers) Assuming that all the apple-producing firms have a similar production schedule, a decrease in the price o..
A team of carrying materials costs $ 15,000 and is expected to save 3,000 in operating costs the first year. The increase in operating and maintenance costs will reduce the net savings $ 250 per year until the equipment is replaced at the end of y..
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