According to George Akerlof, the fundamental reason for market failure is Moral hazard Adverse selection Transportation costs Endogenous prices Asymmetric information
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According to George Akerlof, the fundamental reason for market failure is
- Moral hazard
- Adverse selection
- Transportation costs
- Endogenous prices
- Asymmetric information
In many African households, plots controlled by women are farmed much less intensively than similar plots within the household controlled by men, which suggests that…: [Select one]
-
- these households have unitary preferences.
- these households behave as single, homogenous units.
- these households are maximizing their productivity.
- these households are characterized by intrahousehold power asymmetries.
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- 3.17. Consider the social choice function that selects as a winner thecandidate (or candidates) with the most second-place votes.(a) Show that this method violates monotonicity.(b) Show that this method violates the Pareto criterion.(c) Show that this method is anonymous and neutral.Which of the following is not a condition required for the first welfare theorem to hold: O a. No government policy interferes with the formation of prices. O b. No market actor has market power. © c. Tastes are quasilinear. O d. Income is distributed fairly before markets open. O e. (a) and (c) Of. (b) and (c) O g. (c) and (d) O h. (b) and (d)Because Income depends on work effort and work effort depends on nutrition, suppose the relationship between income (Y) and total food availability (F) in a poor household is given by: Y = 10F + 20F2 – 0.6F3 a) If food availability in a two-person household is 20, would it be “rational” to share the food? Explain. b) If food availability in a two-person household is 30, would it be “rational” to share the food? Explain.
- The Condorcet paradox illustrates Arrow’simpossibility theorem by showing that pairwisemajority votinga. is inconsistent with the principle of unanimity.b. leads to social preferences that are not transitive.c. violates the independence of irrelevantalternatives.d. makes one person in effect a dictator.Suppose that Brooks, Inc. and Spring, Inc. form a joint venture, River Company, whose utility pumps replace the output sold by the parent companies in the domestic market. Assuming that River Company operates as a monopolist and that its costs equal MC0 = AC0, what is: (f) Assume River Company’s formation leads to technological advances that yield cost reductions, such that MC1 = AC1. Compared to the original equilibrium (in (a)), what is the net effect of River Company’s formation on welfare? (Calculate the new total surplus (consumer surplus + producer surplus), and take the difference from your answer to (a).) (g) Assume River Company’s formation leads to wage concessions from River Company employees, such that MC1 = AC1. Compared to the original equilibrium, what is the net effect of River Company’s formation on welfare? (h) Assume River Company’s formation leads to changes in work rules that lead to higher worker productivity, such that MC1 = AC1. Compared to the original…Question 2 Demonstrate, by way of example, and explain fully, taking noting of the underlying assumptions, how you would derive Hicksian and Marshallian demand functions. What are the differences between these? Question 3 In the Walrasian world, Pareto optimal allocations are crucial in establishing an equilibrium outcome with respect to welfare. Give an exposition of the two Welfare Theorems, demonstrating also that they are Pareto efficient
- Suppose you were a benign government who wanted to improve Angela’s situation, but withoutsacrificing the aim of Pareto Efficiency. One policy advisor tells you that all you need to do to achievethis is to change Angela’s reservation option. Is this correct? Please explain with all steps the awnser of this questionSuppose that there are 2 types of plans available to you. Plan A has a deductible of $500, with 10 percent co-insurance rate for many health care services. Plan B has a deductible fo $1000, with 35 percent co-insurance rate. Plan A costs $200 per month in premiums while Plan B costs $80. Discuss characteristics of people who would choose Plan A versus Plan B. Assuming that both plan types exist in the market, who would likely choose Plan B over Plan A? What plan would you choose?Suppose X = R k + for some k ≥ 2, and we define x = (x1 , …, xk ) ≥ = (y1 , …, yk ) if x ≥ y; that is, if for each i = 1, …, k, xi ≥ yi . (This is known as the Pareto ordering on R k + ; it plays an important role in the context of social choice theory in Chapter 8.) (a) Show that ≥ is transitive but not complete. (b) Characterize ≥ Is asymmetric? Is≥ Negatively transitive? Prove your assertions. (c) Characterize ~ defined from ≥ in the usual fashion; that is, x ~ y if x ≥ y and y x. Is ~ reflexive? Symmetric? Transitive? Prove your assertions.
- Need Step by Step answer: How to draft on Excel. Because Income depends on work effort and work effort depends on nutrition, suppose the relationship between income (Y) and total food availability (F) in a poor household is given by: Y = 10F + 20F2 – 0.6F3 a) If food availability in a two-person household is 20, would it be “rational” to share the food? Explain. b) If food availability in a two-person household is 30, would it be “rational” to share the food? Explain.Jason Stilton is the chief executive officer of RightLiving a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors for 85% of the value of the future benefit. The patients recieve the cash to use for medical and other expenses and the investors are guaranteed a positive return on thier investment. The diffreance between the purchace and sale prices is the RightLivinf Profit. Stilton is aware that some sick patients may obtain insurance policies through fraud (Not revealing thier illness on the insurance application). An insurance company that discovers such will cancel the policy and refuse to pay. Stilton beleives that most of the policies he has purchased are legitimate, but he knows some are probably not. Question Using IDDR approch, discuss the decision process Stilton should use in deciding whether to disclose the risk of fraudulent policies to potential investors.How Bergson-Samuelson Social Welfare Function used in a model that considers a society's desire for both Pareto optimality and fairness, Mention all necessary assumptions and specify the conditions that ensure a general equilibrium and social welfare
