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First define moral hazard and provide a specific example. Then, discuss what you believe should be the government's role pertaining to this subject.
A manager of a monopoly firm notices that the firm is producing output at a rate which average total cost is falling but it is not at its minimum feasible point. The manager argues that surely the firm must not be maximizing its economic profits. Is ..
Can citizens who speak an official language or than majority language receive official personal documents in that language. What arrangements have been made in this respect.
Negative externalities such as water or air pollution lead to an inefficient allocation of resources. Explain why. Use a carefully constructed diagram to aid in your explanation. Such externalities have been dealt with mostly through command and cont..
The classical economists believed that our economy was always at full employment or tending toward full employment. If our economy were operating below full employment, what would happen, according to the classical, to move the economy back toward fu..
Describe "Cap and Trade" as it relates to reducing a country's greenhouse gas emissions, in at least 3 content-rich sentences.
When Satelite Glass switched from hourly wage to piece rate, what happened to the workers' productivity? What are the sources of this productivity change?
List several ways that people and businesses in the green movement are participating.
Suppose that there are 100 workers in the country (50 women and 50 men), they are each paid $10 an hour, and the tax rate is 25%. What tax revenue is collected? What is the deadweight loss associated with the 25% tax on labor incomes?
Explain why the demand for the good or service provided by the organization you work for is elastic or inelastic. How does this influence pricing decisions?
If there are zero transaction costs, firms prefer to hire employees over independent contractors. Employees shirking on the job is an example of moral hazard. Tournament compensation theory predicts that the pay for a CEO is set at a level equal to t..
The following graph shows the economy in long-run equilibrium at the expected price level of 120 and the natural rate of output of $600 billion. Suppose firms become pessimistic about future business conditions and cut back on investment spending.
q1. in reading the national business news that mortgage rates improved by 50 basis points. if mortgage rates were
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