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Question: Housing Bubble
"Because of the hosing bubble, many houses are now selling for much less than their selling price just two to three years ago. There is evidence that homeowners with virtually identical houses tend to ask for more if they paid more for the house. What misconception are they making?"
You can analyze the problem by using these three questions:
1. Who is making the bad decision?
2. Does the decision maker have enough information to make a good decision?
3. The incentive to do so?
Answer to these questions will suggest solutions centered on:
1. Letting someone else make the decision, someone with better information or incentives
2. Giving the decision maker more information
3. Changing the decision maker's incentives.
given the following hypothetical u.s. federal income tax brackets and marginal tax rates for single persons for
How would a decrease in expected interest rates over one's working life affect one's intertemporal budget constraint? How would it affect one's consumption.
1. Why might federal spending on roads, waterways, or national security be less subject to direct expenditure off sets than spending on health care or education 2. What might account for the fact that estimates of effect time lags for fiscal polic..
If the ce If the of Pepsi-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then, (according to the arc price elasticity formula,the same formula used in class).
The authors of the paper considered a time to defibrillation of greater than 2 minutes as unacceptable. Based on the given boxplot and summary statistics, is it possible that the percentage of patients having an unacceptable time to defibrillation..
the gains from specialization and trade are based on comparative advantage which reflects the relative opportunity
According to a Honda press release on October 23, 2006, sales of the fuel-efficient four-cylinder Honda Civic rose by 7.1% from 2005 to 2006. Over the same period, according to data from the U.S
Explain with an example the difference between dependent and independent demand and what are the objectives, inputs, and outputs of an MRP system
Explain how the Credit Risk Capital Requirements has changed from Basel Acord to Basel II and later to Basell III. Include a discussion on the difference between standardized approach, the IRB approach and the advanced IRB approach.
Do you think price discrimination through coupons is fair and should there be laws against this behavior? Why or why not?
Suppose that Martha's income is $40,000 per year. She can spend it on health care visits, which cost $80 per visit, or on groceries (standing for all other goods), which costs $100 per bag of groceries. Draw Martha's budget constraint. Using Indif..
Regarding separation of ownership and control, A major change in most corporate policies requires that a majority of stock shares that are voted favor it.
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