Microeconomics (Christopher T.S. Ragan) (z-lib.org)

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In general, moral hazard exists when one party to a transaction has both the incentive and the ability to behave in a way that s ...

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transaction in his or her favour. Codes of professional ethics and licensing and certification practices, both governmental and ...

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many economists argued that the expectation of similar future policies would lead the banks to continue their excessively risky ...

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company). On the other side, someone who knows that she is at low risk and pays a higher price than the amount warranted by her ...

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expected from an average one-year-old car on the road. Consider his theory. Any particular model year of car will include a cert ...

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would then conduct more transactions, for two reasons. First, owners wanting to sell good used cars would be more likely to sell ...

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Owners have an incentive to keep good-quality used cars because it is difficult to convince buyers that a used car is not a “lem ...

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Summary To summarize, the following four situations result in market failures and, at least in principle, provide a rationale fo ...

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16.4 Broader Social Goals Even if the free-market system were to generate an allocatively efficient outcome, there are broader s ...

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demand relative to supply, such as high school graduates without work experience, earn much less. Such differentials in income, ...