How do we solve the incentive problem and design optimal architecture?
What will be an ideal response?
In the U.S. economy, the price system solves information and incentive problems by establishing private property rights. Further, the market system also rewards agents based on their performance. Most importantly, incentive problems and efficient design are solved with the help of the invisible hand.
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Has population growth been a burden for China? Please answer true or false and explain
What will be an ideal response?
Under the Bretton Woods Agreement, the goal of the IMF was to
A. lend to countries experiencing balance of payment deficits. B. help less developed countries advertise their goods in the developed countries. C. provide oversight to the functioning of central banks in the member countries. D. finance international transactions in gold.
Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.
Figure 26.8Refer to Figure 26.8. This economy cannot continue to produce Y2 (or at Point D) because
A. the price of inputs will increase, shifting the aggregate supply curve to AS1. B. the price of raw material will decrease, shifting the aggregate demand curve to AD1. C. the price of raw material and wages will decrease shifting the aggregate supply curve to AS2. D. all of the above.
If the demand for sardines increases as income decreases, sardines are a(n)
A. substitute good. B. inferior good. C. normal good. D. complementary good.