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Welfare Reform What has happened to the number of people on welfare since 1994? What explains the change over time?
Disincentives How does the implicit tax on earned income affect work incentives? How do some people avoid the implicit tax?
Entrepreneurship What entrepreneurial idea do you have? How would your idea contribute to the economy?
What factors should a winner consider in determining how to take the money?
Show how to calculate the cost to the state of paying out such a prize. Assume payments are made at the end of each year.
What are some factors that contribute to differences among interest rates?
Identify some downsides for individuals and the economy of violating intellectual property rights.
A management consultant advised a small business owner to fully analyze all transaction costs. What assumption from traditional economics is in dispute here?
Why would existing franchise owners have an interest in the maintenance of high application standards for new franchise owners?
Signaling and Screening What roles do signaling and screening play in a labor market with asymmetric information?
Adverse Selection and Moral Hazard Describe the problems faced by health insurance companies as a result of adverse selection and moral hazard.
Distinguish between hidden characteristics and hidden actions. Which type of asymmetric information contributes to the principal-agent problem?
Search with Imperfect Information Fifty years ago, people shopped by mail using catalog. What reasons can you suggest for the growth in these forms of shopping?
Why do some firms produce multiple product lines, while others produce only one?
What are the potential benefits and costs of such outsourcing? Prepare your answer by reviewing. The Outsourcing Institute's Top 10 Reasons Companies Outsource.
Why do some oil companies drill for their own crude oil and others buy crude oil in the market?
Boundaries of the Firm Define vertical integration. What factors should a firm consider when determining what degree of vertical integration to undertake?
Rationale for the Firm Explain Ronald Coase's theory of why firms exist. Why isn't all production consolidated in one large firm?
Read about an IPO within the two most recent years. How much money was raised? For what will the money be used?
Which outcome would benefit the economy more, Jane Wyler having a patent on all reusable dry-cleaning bags or Rick Siegel developing a cheaper reusable bag?
Mergers and Public Policy Under what circumstances, and why, would the government be opposed to a merger of two firms?
Between 2001 and 2009, how was the demand for lumber affected by the demand for housing? In what sense is the demand for lumber a derived demand?
In what sense is the demand for labor a derived demand? What is their goal, and what decision criteria do they use in trying to reach that goal?
Collusion and Cartels Use revenue and cost curves to illustrate and explain the sense in which a cartel behaves like a monopolist.
Use a costand-revenue graph to illustrate and explain the initial short-run profits in the video rental business in monopolistic competition.