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Discuss Daniel Kahneman’s Mckinsey interview, and the message he delivers in regards to the risk involved in using inside information (one of the persistent problems in decision theory – with numerous recent examples, including the Financial Crash of 2008).
In the movie Peter says: “It’s not that I am lazy. It is that I just don’t care…The problem is one of motivation.” What kind of problem is depicted in the movie? Is it one of moral hazard or adverse selection? Explain.
describe the amount of output produced by Stone Company. How much profit will Stone Company make when it acts as a monopolist.
Clancy and Eileen are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to..
Suppose the economy is thought to be 1 percent above potential (i.e., the output gap is 1 percent), when potential output grows 3 percent per year. Suppose the Fed is following the Taylor rule, with an inflation rate of 3 percent over the past year. ..
Describe perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings.
A? counter-example to the? Stolper-Samuelson theorem has firms using more skilled labor as it becomes more? expensive, and less unskilled labor as it become less? expensive, even if the firms have time to adjust their labor mix. How can this possibly..
Comment about substitution effect and income effect when price of good one alone decreases if the goods are perfect substitutes.
Regarding combined returns on a merger, what does the efficiency theory state, and what do empirical studies suggest? Regarding the same issue, what does the entrenchment theory state, and what do empirical studies suggest?
Often, there is news and critics that cast stones at the economic policies of Congress and/or the President. However, I find that average critics don't offer up an alternative solution, but simply criticize. Pretent that you are in charge for a day o..
q1. a budget deficit that is only temporary cannot be the source of inflation. is this statement true false or
Consider a market where demand is d:p=24-Q and supply is s:p=2+Q. impose a specific tax t= $2 on each unit sold in the above market.
As the exclusive carrier on a local air route, a regional airline must conclude the number of flights it will provide every week also the fare it will charge.
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