question
Adverse selection
answer
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
question
Agent
answer
a person who is performing an act for another person, called the principle
question
Arrow's impossibility theorem
answer
a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individuals preferences into a valid set of social preferences
question
Behavioral economics
answer
the subfield of economics that integrates the insights of psychology
question
Condorcet paradox
answer
the failure of majority rule to produce transitive preferences for society
question
Median voter theorem
answer
a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter
question
Moral hazard
answer
the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
question
Political economy
answer
the study of government using the analytic methods of economics
question
Principal
answer
a person for whom another person, called the agent, is performing some act
question
Screening
answer
an action taken by an uninformed party to induce an informed party to reveal information
question
Signaling
answer
an action taken by an informed party to reveal private information to an uninformed party
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
