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Zaneb is a high-school teacher and is well known in her community for her honesty and integrity. She is shopping for a new car and plans to borrow the money to pay for it from her local bank. Does Zaneb create any moral hazard or adverse selection problems either for the bank or the car dealer? Explain your answer.
Do the bank or the car dealer create any moral hazard or adverse selection problems either for Zaneb ? Explain your answer.
What arrangements is Zaneb likely to encounter that are designed to help cope with the moral hazard and adverse selection problems she encounters in her car buying and bank loan transactions?
Describe the cutthroat competitors reasons for not raising or lowering his price, thereby accounting for the kink in his demand curve.
Early in 2007, a survey of greenhouses indicated that the demand for houseplants was rising sharply. AT the same time, large numbers of low price producers started growing plants for sale. The overall result was a drop in the average price of hou..
Changes in government spending and interest rates
Illustrate what are economic influences which affect the organization in a negative way.
Are you a Classical or Keynesian economist? Pick a perspective and defend.
the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is -1.8..
Estimate whether each of following, other things held steady, would lead to an rise, a reduce, or no change in long run aggregate supply, and Describe difference between the government purchases multiplier and the net tax multiplier.
A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function: u(x1; x2) = 1 - (x1 4)^2 - (x2 3)^2
In perfect competition, profits will disappear in the long run as new firms enter the market; in a monopoly, profits may exist in the long run. In the short run, both monopoly and perfect competition attempt to minimize total costs.
According to the Heckscher-Ohlin theorem, is Russia capital abundant or labor abundant? Briefly explain. What is the impact of opening trade on the real wage in Russia? Briefly explain.
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 valu..
Describe their organizational structure and what market entry strategies each of these companies are currently using.
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