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What is information asymmetry and example?
What is moral hazard and example?
What is adverse selection and example?
If the proposed textbook receives a favorable review, explain how should the editor revise the probabilities of the various outcomes to take this information into account.
Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetratio..
Explain the following concepts: demand schedule, demand curve, supply schedule, supply curve. Then, list the determinants of demand and explain how a change in each determinant affects the demand curve. Do the same for the supply.
Kermit is considering purchasing a new computer system. The purchase price is $129,090. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments o..
Have a lower value of a flight than business travellers. What pricing strategy options are available to the airline? In addition, what relationship between the two markets limits the airlines ability to raise price.
Explain why, when the price of good changes, the price elasticity of demand is likely to be higher or lower as a longer period of time elapses. Consider as an example the OPEC oil price increases in the 1970s.
Suppose that the authorities had effectively prohibited price-gouging and somehow managed to ensure that their action had no effect on the quantity of ice in the area. What would have been the effect on social welfare?
Why would a country employ the use of a guest worker program? Why would a country include offshore assembly provisions in its tariff code?
Explain how is the activity reflected on the balance on current ccount different from the activity reflected on the capital.
Suppose when you are 21 years old, you deposited $1000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age 65, 44 years later. How much more will be in your account if the ..
This month your vendor invoiced $50,000 in testing charges for your production run. The unit cost for testing is twice as much for each of the first 500 units per month as compared to each unit over 500. If 750 units were shipped to the vendor this m..
Briefly explain the disparities we observed in level of economic development in the world today. According to easterlin, why is substantial formal education system necessary for sustain economic growth? what are some of the characteristics of that ed..
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