Managerial Economics: adverse selection problem or a moral hazard problem

Managerial Economics: adverse selection problem or a moral hazard problem

First, read the 7 passages on the following webpages.

1.

http://www.wsj.com/articles/how-to-trick-the-guilty-and-gullible-into-revealing-themselves-1399680248?tesla=y&mod=WSJ_hp_RightTopStories&mg=reno64-wsj

2.

http://managerialecon.blogspot.com/2013/11/repost-advice-for-selling-on-ebay.html

3.

http://www.foxbusiness.com/features/2013/11/05/what-happens-if-young-people-dont-sign-up-for-obamacare.html

4.

http://managerialecon.blogspot.com/2013/10/why-are-young-people-leaving-workforce.html

5.

http://www.nytimes.com/2013/07/22/business/black-boxes-in-cars-a-question-of-privacy.html?_r=1&#h[BadHwg,1,3]

6.

http://www.wsj.com/articles/heres-a-thing-coders-can-skip-college-1427985222

7.

http://qz.com/183224/how-chipotle-transformed-itself-by-upending-its-approach-to-management/

After reading through these readings, then answer the following questions.

Determine if the following are an adverse selection problem or a moral hazard problem.

1. Young people opting out of Obamacare

2. Auto black boxes

3. Unemployment via disability

4. Zappos

5. David Lee Roth’s brown M&Ms

6. King Solomon’s test

7. Defendant’s during the Middle Ages

 

The attached is the textbook, these questions cover from chapter 19,20,21. You might need to read them.

APA STYLE, please answer thoroughly, no less than 5 pages, you can choose the references depends on the questions asked.

 

 

 

 

 

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