Review Questions Eco 311

REVIEW QUESTIONS ECO311 . General residue and marketplace efficiency 1 equalize and demarcation partial and general equilibrium summary 2 use hypothetical demand and supply curves, enlarge how general equilibrium is achieved. Discuss what is meant by the interdependence of markets and signifi canisterce of the feedback publication. 3 Use the Edge worth box to inform Pareto competency. 4 Illustrate and explain how the Production opening move landmark is derived from the Edgeworth boxes. 5 Illustrate and explain how the Production accident termination is derived from the Edge worth box. Markets with Asymmetric Information 1 Use the lemons fuss to illustrate and explain how asymmetric education leads to market failure. 2 let off the principal-agent relationship and citing examples dissertate the principal-agent problem. 3 Compare and contrast adverse selection and object lesson hazard in the market for insurance. Can one ma ke it without the other? Risky and Certainty 1 Suppose Jeffrey is a salesman who is currently earning an income of R10 000 and is bring aboutting 10 units usefulness. Jeffrey can earn that income adjacent year with certainty. Jeffrey is offered a chance to command a brand-new salesman argumentation that offers a 0.5 probability of earning R16 000 pliable 16 units of utility if he is successful and 0.

5 probability of earning R5 000 pliant 5 units utility if he not successful. Should Jeffrey take the new job? 2 Illustrate and explain the difference amongst and individual who is risk neutral, ris k averse and risk referrer (loving). ou! tgo theories 1) Illustrate and exempt the living calendar method hypothesis 2) Explain how the Life Cycle guesswork by Ando- Modigliani is related the steadfast Income Hypothesis by Milton Friedman. 3) What are the main weaknesses of the Life Cycle Hypothesis? 4) Which theory of consumption is closer to the actual comment of the really world? 5) Define and explain automatic stabilizers....If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

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