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"Adverse Selection and Moral Hazard" Many police officer positions require the applicant to have a college degree even though the tasks of a police officer rarely call upon college course material.
Why don't police departments increase their applicant pool by dropping this requirement?
Suppose the market of chocolates is unregulated. That is, chocolate prices go are free to adjust based on the forces of supply and demand. If an excess demand exists in the chocolate market, then the current price must be _____ (higher/lower) than th..
Consider the economy of Lewisville, which is just beginning to industrialize. The economy was entirely reliant on corn production until now. There are 100 identical families each farming their own land. Each family has 6 members who participate equal..
A firm charges its customers $20/unit for the first unit purchased and $10 for each additional unit in excess of one unit. Suppose the firm’s marginal cost is fixed at $5. How many units will this firm sell? Find the profits earned from the price str..
Amacon is a bicycle manufacturer that produces approximately 5,000 bikes each month. In order to meet that demand, Amacon needs 10,000 rubber tires at its assembly plant on the last Thursday of each month. Please explain the answers to the followi..
PbP Company have pay $10,000 to disassemble and ship the furnace to the new owner. What is the net cash flow after tax as it will result from selling this furnace in the year 2012.
Discuss a variety of different derivative instruments relating to foreign exchange. What is the underlying function of these different instruments? Can the same goal be achieved using different derivative instruments? How? Consider the term disinterm..
Why does the assumption of independence of risks matter in the examples of insurance. Illustrate what would happen to premiums if the probabilities of house.
Discuss the Current Economy of the US and/or World. Discuss issues such as: What is currently occurring? How is it affecting people and businesses. How is it affecting the local, regional, national, and world markets? How are local and state gov'ts b..
Explain the forces that drove Mittal Steel to start expanding across national borders, including a history of Mittal Steel.
For each of the following topics in choice under certainty, give an example of how it has applied to you or someone close to you, and how to potentially make a better decision. Failure to consider opportunity cost, Sunk-cost fallacy, Compromise effec..
Compute the aggregate demand curve and aggregate supply curve that would maintain the state of economy in less than full-employment level of real GDP.
which good should the government impose the tax if it needs to maximize government revenue
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