TAILIEUCHUNG - Lecture Principles of economics - Chapter 22: Frontiers of microeconomics

In this chapter you will examine the problems caused by asymmetric information, learn about market solutions to asymmetric information, consider why democratic voting systems may not represent the preferences of society, consider why people may not always behave as rational maximizers. | 22 Frontiers of Microeconomics ASYMMETRIC INFORMATION A difference in access to relevant knowledge is called information asymmetry. Hidden Actions: Principals, Agents, and Moral Hazard Moral Hazard Moral hazard refers to the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior. Employers can respond to the moral-hazard problem in various ways: Better monitoring. High wages. Delayed payment. Hidden Actions: Principals, Agents, and Moral Hazard Moral Hazard An agent is a person who is performing an act for another person, called the principal. The principal is a person for whom another person, called the agent, is performing some act. Hidden Actions: Principals, Agents, and Moral Hazard Adverse Selection Adverse selection refers to the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uniformed party. Hidden Actions: Principals, Agents, and Moral Hazard Example of Adverse Selection: Many .

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Frontiers of microeconomics
• Asymmetric information
• Moral hazard
• Adverse selection
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Factors of production
• Demand for labor
• Production function
• Marginal product of labor
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Federal reserve
• Central bank
• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
• Open economy
• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy