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Moral hazard
Suppose the Sri Lanka government awarded contracts to private companies to rebuild the countryâ? Is infrastructure damaged by the tsunami and it based its contracts on a percentage of the cost of the reconstruction. Would this constitute a moral hazard? If so, what would the government need to do to prevent such a problem?
Assume a merger of company would simultaneously lessen competition and reduce unit costs through economies of scale.
Explain how does the state of the economy affect federal budget. Explain how can macroeconomic variables inter-relate to each other.
You are told to produce a quantity that maximizes profit. How many units do you produce and what is your profit? How many machine and labour hours are used in production?
Elucidate what happened in the simulation as you increased and lowered spending and income tax rates
Suppose the firm raised the price to $4.00 while increasing its advertising expenditure by $100. Would this be beneficial? Explain. Illustrate your answer with the use of a demand schedule and a demand curve.
P stands for price Pr stands for price of related good also N stands for per capita disposable income.
Explain if you are traveling to Europe in six months and you believe the Euro is going to appreciate against the American dollar, list two ways you could hedge this situation and protect yourself against the appreciation.
What are the three methods in order to be equipped with the tools necessary for evaluating a market's equilibrium.
Elucidate what have noticed is that there is a high demand for Louis Vuitton bags even though they are so expensive.
Assume an economy in which the reserve ratio is 15 percent, people hold 10 percent of their deposits in the form of cash, and there are no other leakages.
Elucidate the maximum amount that would pay for an asset that generates an income
The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
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