1. Explain that how the physical state of the hazardous substances has potential for harm.
2. What is moral hazard? List three things an employer might do to reduce the severity of this problem.
3. Why is the Solow Model considered an “exogenous” growth model and the Romer Model an “endogenous” growth model?
4. Define signaling and screening and give an example of each.
5. What is adverse selection? Give an example of a market in which adverse selection might be a problem.