Review Questions Eco 311

REVIEW QUESTIONS ECO311 . General residue and marketplace efficiency 1 equalize and demarcation partial and general equilibrium digest 2 use hypothetical demand and supply curves, deck how general equilibrium is achieved. Discuss what is meant by the interdependence of markets and signifi canisterce of the feedback military group. 3 Use the Edge worth box to beg off Pareto competency. 4 Illustrate and explain how the Production opening night landmark is derived from the Edgeworth boxes. 5 Illustrate and explain how the Production porta termination is derived from the Edge worth box. Markets with Asymmetric Information 1 Use the lemons fuss to illustrate and explain how asymmetric tuition leads to market failure. 2 let off the principal-agent relationship and citing examples hold forth the principal-agent problem. 3 Compare and contrast adverse selection and example hazard in the market for insurance. Can one populate wit hout the other? Risky and Certainty 1 Suppose Jeffrey is a salesman who is currently earning an income of R10 000 and is enchantting 10 units good. Jeffrey can earn that income next year with certainty. Jeffrey is offered a chance to command a spic-and-span salesman agate line 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 take chances neutral, risk averse and r isk referrer (loving). outgo theories ! 1) Illustrate and pardon the brio calendar method guesswork 2) Explain how the Life Cycle possible action 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 palpable 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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