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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?
How do governments intervene to minimize the impact of market failures?
What is the probability that the next car passing will be exceeding 51 miles per hour?
Suppose you were given a choice to select from a menu of items in your employee benefits package. The menu might include medical coverage ($1500 deductable), life insurance equal to a year's salary, vacation time based on length of employment with th..
If all firms, existing and potential new entrants face decreasing industry costs in the long run under perfect competition, the industry supply curve will:
What is meant by the term ‘network effect?’ Give an example of a product or service that benefits from the network effect. Also name a product that does not benefit from the network effect.
Form a table, across the top level four columns with the four market model structures. Along the left column working down, label “Level of Competitiveness”, “Number of Firms”, “Type of Pricing”, “Amount of Product Differentiation”, and “Ease of Entry..
Does the nominal wage decrease when there is a negative supply shock? What happens to the real wage
Classical economists of the 1930's did not believe that: Suppose the economy is initially in a recessionary gap and consumer and business expectations become less optimistic due to the War on Terrorism. In the long run, assuming that there is no poli..
Find the probability that the number who consider themselves baseball fans is? (a) exactly? five, (b) at least? six, and? (c) less than four.
We are dealing with the loanable funds market of an economy (slide 40, chapter 3). Assume that the savings function is upward sloping (as in slide 49, chapter 3). In each of the following cases, what will happen to equilibrium interest rate and equil..
Discuss, Adopt and apply one of the four classic theories of Economic Development on
Explain how superior goods and inferior good relate to income and demand. Provide a relevant example of each (hospitality and/or tourism related) and be sure yo
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