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Part I.
Describe an example you have experience with of the principal-agent problem (for example, you have a desire for your children to listen in school and do well, while for them, goofing off at school might be much more fun), and explain how incentives can be used to overcome the principal-agent problem (such as paying your children for good grades). Include in your explanation an analysis of the risks in using incentives.
Part II.
How will you be able to apply what you learned in this course to your current or future work?
Why are error and uncertainty in the results of a GIS-based analysis not the same thing? Describe each.
Do you think CEOs and other executives are worth the compensation packages they receive? Why or why not? Do you agree with Peter Drucker that corporate executives should receive compensation packages no larger than a certain percentage of the pay of ..
Consider the market for laptop computers. The demand for laptops is Q = 1800 – 3P. Suppose the supply of laptops is given by Q = –200 +2P. What is the equilibrium price of laptops? What is the price elasticity of demand at the equilibrium price and q..
Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-factors model. Currently, the prices of manufactured and agricultural outputs are $5 and $1, respectively;
(a) This was also illustrated in class and in the lecture notes. Where {a; b; cg} > 0, p(Q) = a-bQ, and TC(q) = cq, show that the equilibrium quantity chosen by a Cournot competitor in an n-firm oligopoly is equal to qi =(a-c)/(n + 1)b (b) Show th..
In 1973, there was an oil supply shock created by OPEC (the Organization of the Petroleum Exporting Countries). Your textbook describes the supply shock.
The classical dichotomy refers to the separation of
Conduct an Internet search using the following descriptors: biblical worldview and money. Consider your findings in the light of any topic in this chapter.
Define underpricing and explain why the majority of IPOs are underpriced.
Suppose that as the result of the crisis in Greece, the Euro depreciates against the US dollar. Why should you care when the US dollar strengthens relative to other currencies? Describe the ways this could impact your life and that of your friends an..
Compare how a one-time permanent increase in the price of oil (e.g. oil rises from $50 to $100 and stays at $100) would affect both countries
What is the expected rate of depreciation in the Korean won relative to the Japanese yen
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