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Describe a private cost, a private benefit, an external cost, and an external benefit that result from your decision to adopt a dog.
What are the private costs and benefits associated with smoking cigarettes? What are the external costs? If smokers paid the social cost of cigarettes.
Why this situation constitutes a negative externality, how it leads to too much irrigation and what it would mean for US farmers to internalize the externality.
Hand washing has external health benefits, helping prevent the spread of communicable. How would it affect the number of people who are sick at any given time?
How might Jimi and his neighbor reach a private solution to their problem? Describe potential problems that might make it hard for a private solution to occur.
Explain to them what the most-efficient tax level will be, and why there are costs to setting the tax too high or too low.
In what circumstances will a tax make a market less efficient? In what circumstances will a tax make a market more efficient?
Suppose that a neighborhood group in Seattle organizes a group of families so that those who plan to go over their one-can garbage quota can find households.
If both policies lead to the same amount of pollution reduction, why might producers prefer the tradable-permit option?
Discuss the pricing decisions of generic drug manufacturers. What factors contribute to the advantages and disadvantages of various pricing strategies?
How do economists define a bubble? Provide an example of an asset market that you think could be the next bubble and explain why.
The essay should apply economic techniques and/or principles to analyse an environmental issue or policy. Choose one topic and write a 2,500-word essay on it.
Return to the description of the student loan program that opened the chapter. Would information asymmetry cause a problem in this situation? Why or why not?
Describe an information asymmetry in this situation. Explain who is likely to benefit from this information imbalance.
A club charges a flat fee for an open bar (all-you can-drink). Describe the moral-hazard problem.
The college admissions process involves both screening and signaling. Give an example of each. Who is doing the screening? Who is doing the signaling?
Explain why joining a fraternity or sorority might include elaborate or difficult rituals. Which is the more effective signal?
Why do advertisers use this technique rather than a direct description of the goods or services?
For which instructor will teaching evaluations be the most important this semester? Explain why?
Consider the market for auto insurance. Explain why insurers ask student drivers about their grades.
Why Is the new disclosure rule likely to benefit the average consumer? Explain your reasoning.
Describe briefly what economists call a multitask agency problem, and relate your answer to the case of microfinance.
What is yardstick competition? How does it differ from more general uses of competition? Illustrate your answer for the particular case of microlenders.
Show that implicit incentives can only be imperfect substitutes to the explicit monetary incentives obtained via a wage that is linked to performance.
Explain why in some markets a single firm without competitors will produce at a lower cost than if the firm faced competition.