There are four short video (around 3 to 4 min), post comment on each video.
2.2 Incentives–Mail Route
Watch the following video: http://yadayadayadaecon.com/clip/81/
How far would you go in helping get rid of a undesirable acquaintance?
2.3 Moral Hazard & Adverse Selection–Rental Car
Watch the following video: http://yadayadayadaecon.com/clip/23/
How does opting for the insurance on the rental change a person’s perception of risk?
3.1 Resource Allocation & Ownership–Solyndra & Your Tax Money
Watch the Solyndra news story. 1) Please comment on why the taxpayer resources might be squandered by Solyndra & our Government? 2) Would this happen if you had started a company with you own money?
3.2 Resource Allocation & Ownership–Subprime Crisis Origins
the notion of Moral Hazard and Adverse Selection? How does the Subprime Crisis demonstrate a real world example of Moral Hazard & Adverse Selection?
3.3 Production Possibilities Frontier
What is the law of increasing opportunity cost?
Does the law of increasing opportunity cost apply for the Production Possibilities Frontier in the case of Rabbits and Berries?
If the opportunity cost of Rabbits with respect to Berries (and/or vice versa) was constant, what would the PPF look like?