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Explain the concept of incentives matter

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Explain the concept of "incentives matter" and provide and example What is an externality? Give the differences with a definition and two examples, of a positive externality and a negative externality.

Explain three different trade-offs associated with regulations.

Explain "asymmetry of information" in relation to the market economy. What are two examples given in the book?

List the six main pillars of human capital

List and explain the four simple needs of financial instruments.

Explain the role of a subsidy in economics. What does the author mean by "death by a thousand subsidies"?

Explain the two tools associated with fiscal policy. Can you give an example for each where you see this happening today in our economy?

Discuss why the American economy has a "speed limit" and how the Federal Reserve helps the economy maintain that speed. What are the ramifications of going too slow or too fast?

What are the key factors in allowing a country to develop economically?

Reference no: EM133124944

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