1. What goods and services would you include in an
estimate of the basic necessities for a family of four?
2. If a family of three earned $20,000, would they
be able to make ends meet given the official poverty
threshold?
3.How do you think the problem of moral hazard
might have affected the safety of sports such as football
and boxing when safety regulations started requiring
that players wear more padding?
4.A website offers a place for people to buy and
sell emeralds, but information about emeralds can be
quite imperfect. The website then enacts a rule that all
sellers in the market must pay for two independent
examinations of their emerald, which are available to the
customer for inspection.
5. How would you expect this improved information to affect demand for emeralds on this website?
6. How would you expect this improved information to affect the quantity of high-quality emeralds sold on the website?
7. Is Diffusion needed for a product to be successful?
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