Examines workplace negotiation situations
Problem: Give an example of a time that you negotiated a situation in the workplace . Was the outcome successful? What was the outcome of that negotiation?
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A. Calculate the cost of actuarially fair insurance in this situation and use a utility-of-wealth graph to show that the individual will prefer fair insurance against this loss to accepting the gamble uninsured.
Give an example of a time that you negotiated a situation in the workplace . Was the outcome successful? What was the outcome of that negotiation?
Consider a state in which automobile drivers are divided equally into two types of drivers: careful and reckless. The average annual auto-insurance claim is $400 for a careful driver and $1,200 for a reckless driver.
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Problem: Are asymmetric information and agency cost theories relevant for the modern corporation?
The projected federal deficit for next year is $1.3 trillion. Can we afford such programs? Can we keep on borrowing? Should the federal budget be balanced every year? Discuss.
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