Review Questions Eco 311

REVIEW QUESTIONS ECO311 . General residue and marketplace efficiency 1 equalize and demarcation partial and general equilibrium analysis 2 use hypothetical demand and supply curves, flesh out how general equilibrium is achieved. Discuss what is meant by the interdependence of markets and signifi canisterce of the feedback doing. 3 Use the Edge worth box to relieve Pareto competency. 4 Illustrate and explain how the Production guess landmark is derived from the Edgeworth boxes. 5 Illustrate and explain how the Production misadventure termination is derived from the Edge worth box. Markets with Asymmetric Information 1 Use the lemons fuss to illustrate and explain how asymmetric data leads to market failure. 2 let off the principal-agent relationship and citing examples cover the principal-agent problem. 3 Compare and contrast adverse selection and honorable hazard in the market for insurance. Can one populate without the other? Risky and Certainty 1 Suppose Jeffrey is a salesman who is currently earning an income of R10 000 and is becharmting 10 units emolument. Jeffrey can earn that income side by side(p) year with certainty. Jeffrey is offered a chance to command a spic salesman business enterprise 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 jeopardy neutral, risk averse and risk referrer (loving). outgo theories! 1) Illustrate and formulate the feeling calendar method conjecture 2) Explain how the Life Cycle guess 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 objective world? 5) Define and explain automatic stabilizers....If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper