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1. Explain precisely how and why the moral hazard may arise in rural land contract in developing countries.
2. In order to know the effectiveness of a poverty alleviation program, an economist has run the following regression:
Yij +a1 Xij +a2 Tij+a3 Vj +eij
where Yij is the consumption of household i living in village j, Xij is the household characteristics (education, asset, land, age, gender, household size), Tij indicates if the household has received the program or not Vj is the information on village characteristics, eij is the error term - the unobserved characteristics of household i. The economist has found that a2 is negative and statistically significant, and has concluded that the program is making households poorer.
Do you agree with his conclusion? Why or why not?
For the past few years, the value of the US dollar has revealed a falling trend. What could be the possible implications of the economy with this falling?
Neglecting any salvage value for either plan and with effective annual interest at 8%, what present expenditure can be justified for the auxiliary equipment? Use a study period of 12 years.
Assume, in a 2-sector model, that individuals earn the following payments from business sector: wages $520, interest $30 rent $ 10 and profits $80.
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram. The state legislature is concerned that the current price does not give the physiotherap..
Find all pure-strategy Nash equilibria in the game below. List each Nash equilibrium in (Player 1’s Strategy, Player 2’s Strategy) form.
Prepare a term paper on Fiscal Policy - The Term Paper must be between 600-700 words in length and contain a Title Page as the first page of the paper and a Reference Page as the last page of the paper.
For each hour of work, the employer deducts $1 and sends the money to the city government. The initial wage (Before the tax) is $10, and total employment is 20,000 hours per day. Use a graph to show the effect of the tax on the equilibrium wage an..
kick flip inc. is a specialty skateboard manufacturer. the company is experiencing demand that greatly exceeds capacity
Since identifying the M D curve is difficult, the overnight interest rate is often used as the primary method of implementing monetary policy, whereas the money supply is kept fixed. Explain whether this statement is correct or incorr..
Kals Investment Group will receive a sum of $75,000 two years later for an investment of $40,000 if event A were to occur, and will receive nothing if event A were not to occur. The probability of event A occurring is 90%.
Explain how software entropy is a major issue especially in low income countries where standards are not adhered to.
the new mayor has pledged to reduce air pollution and the only source of air pollution in the city are two cement
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