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What potential problems do you see arising when the private sector delivers a social service? What are the advantages of this approach to service delivery?
Consider the following statement from the book: If you incur sunk costs, you are vulnerable to post-investment hold-up.
Define and explain fiscal policy, explain the difference and workings of expansionary versus contractionary fiscal policy, budget deficit versus budget surplus. Describe excessive increases and decreases in aggregate demand; what do they cause, how d..
Alice and Betsy are playing a game in which each can play either of two strategies, "leave" or "stay". If both play the strategy "leave", then each gets a payoff of $100. If both play the strategy "stay" then each gets a payoff of $200. If one plays ..
Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may use quantities four (Q = 4) through twenty (Q = 15) by units of one (1) for your graph.
Illustrate what conclusions can you draw about this period by comparing this cycle to previous business cycles.
Kavita De Falla is an individual with low risk tolerance who has just inherited $100,000. She has no immediate needs for the funds but would like to supplement her current income. What would be the expected price of each bond one year from now if int..
A risk neutral principal hires a risk neutral agent to work on a project. The project can either yield high output h or low output l. The probability of h depends on the agent’s unobservable effort e. With probability 1 − e the output is low.
A proposal has been advanced to limit advertising of pharmaceutical prices to prevent unfair pricing by national chains. You estimate that limits on price advertising will change the price elasticity of demand from -5.63 to -4.43. From the pharmacis..
The total utility for water is higher than the total utility for diamonds. You can explain the diamond-water paradox (that diamonds are expensive but not necessary for survival / not as useful, while water is inexpensive yet necessary for survival / ..
An individual derives utility from consumption goods, X, and leisure time, N, to maximize the daily utility level, u = XN. Outside income per day is $m and the price of consumption goods is $p. How many units of consumption goods will be produced?
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They purchased their home 11 years ago for $74,102. The home was financed by paying 15% down and signing a 30-year..
Clothing costs $2 per unit always. Find Julies optimal basket of consumption.
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