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Difference between adverse selection and moral hazards? Use detailed examples to explain what the two concepts imply. In the context of your examples, discuss how the problems associated with moral hazards and adverse selection can be resolved.
Explain what causes economies of scale and can economies of scale and diminishing marginal returns apply to the same firm? Explain.
Goods and services not purchased in markets, such as food produced and consumed at home, are usually not included in GDP. How might this impact our measure of economic well being Should we try and include these types of good when measuring GDP
If Jane is currently willing to trade 4 movie tickets for 1 basketball ticket, then she must like basketball better than movies. True or false? Explain.
the fixed cost for a steam line per meter of pipe is 450x 50 per year. the cost for loss of heat from the pipe per
Differentiate the real exchange rate and the nominal exchange rate and describe two reasons why purchasing power parity does not hold for all goods and services.
A new aerated sewage lagoon is required in a small town. Earlier this year one was built on a similar site in an adjacent city for $2.3 million. The new lagoon will be 65 percent larger. Use the data in Table 2-l to estimate the cost of the new lagoo..
Fast-food chains like McDonald"s, Burger King, and Wendy"s operate all over the United States. Therefore, the market for fast food is a national market.
analyze how the law of demand applies to a recent purchase that you made. describe how the product has changed in price
three friends are choosing a restaurant for dinner. here are their preferences rachel ross joey1st
1. what factors can contribute to unemployment?2. how can technology lead to greater unemployment or is it a benefit to
Draw the capital market line. What is the optimal portfolio of a mean-variance in-vestor with risk aversion A = 2? What is the mean and standard deviation of this portfolio? Show this portfolio in the .gure. What is the value of this investor’s mean-..
Why would a chain such as Marriott tend to own its hotels in resort areas, such as national parks, where there is little repeat business, and franchise hotels in down-town areas, where there is a lot of repeat business.
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