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Which of the following terms best describes a contract that guarantees an agent some payment, but provides enough incentive so that the agent does not shirk?
Risk-sharing contract
Risk-averse contract
Risk premium contract
Certainty equivalent contract
Variability reduction contract
A researcher estimated that the price elasticity of demand for automobiles in the United States is -1.2, while the income elasticity of demand is 3.0. Next year, U.S. automakers intend to increase the average price of automobiles by 5 percent, and th..
a factory benefits from discharging effluent q into a lake. the marginal benefit function is given by 60-2q. the
almond growers in ca are very concerned. normally honey producers would keep their bees next to almond orchards where
what do you think must be 3 major macroeconomic goals of the economy? what policy mix assists government attain these
Now, suppose that—in addition to the 20% tariff (per pair) on imported shoes—the U.S. also imposes a 10% tariff on the imported components used by the shoe industry to make each pair of shoes. What is the effective rate of tariff protection (ERTP) fo..
A new widget, with a service life of four years, would save $50,000. in production costs each year. Using a 12.00% nominal annual interest rate, determine the highest price that could be justified for the widget, i.e., determine the present value of ..
Cher's marginal rate of substitution of necklaces (N) for earrings (E) is 5 (MRSEN = 5).
What is Jims best affordable choice and by how much can T ticket prices increase without making Jim worse
Which one of the following is an advantage of having an independent central bank?
It is estimated that the maintenance cost on a new car will be 400 the first year. Each subsequent year, this cost is expected to increase by 100.
What is the optimal degree of air cleanliness? What is the optimal degree of air pollution? Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of..
1. when the government increases taxes to provide traditional public goods such national security there tends to bea.
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