Write an essay on the importance of a sound banking system in developing countries
What will be an ideal response?
See for example the vivid example of Chile in 1981-1982 experience. Students should explain the phenomena of moral hazard as a part of their answer.
Economics
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Explain the terms "paternalism" and "consumer sovereignty."
What will be an ideal response?
Economics
Perfectly competitive markets are efficient because
A) they always reach equilibrium. B) firms in the market are price takers. C) the cost to society for producing the goods is exactly equal to the value that society places on the good. D) the long run equilibrium assures that the prices of resources will not increase.
Economics