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Discussion
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.
What is the Medicaid Notch? Do you think that the Medicaid Notch is a realistic concept?
Explain the problems of “cannibalization” and “arbitrage” in the context of price discrimination and discuss how they can be avoided. Provide two examples of each problem (and possible solutions) from the publishing industry.
A few years ago a construction manager earning $70,000 every year working for a regional home builder decided to open his own home building company.
Will monitoring costs decline or increase when employees are paid the above-market equilibrium wages by the firm?
Why is unemployment crucial to a country's development? What role does critical thinking play in our study of economic development?
Sketch Homer's indifference curve passing through point (8 donuts, 8 beers). Sketch Homer's indifference curve passing through point
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
When it comes to the trait of introversion, what behaviors could be observed to assess this characteristic?
Using appropriate diagrams of (i) wage and price setting, and (ii) aggregate demand and aggregate supply, explain and discuss the effects of an increase in the price of oil, assuming that this increase in price leads to an increase in the markup set ..
If households spend $100 billion on goods and $90 billion on services, how much in revenues do businesses receive in the product market?
On each of the following grounds, briefly rationalize an economist's objection to the term "behavioural economics":
Most large urban areas have a mass transit and railway system that facilitates travel within the city, and in some cases, between the city and its neighboring areas and suburbs. What are the benefits and costs of maintaining a mass public transport s..
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