Show how asymmetric information may result in market
outcomes which are not Pareto efficient. How might...
Show how asymmetric information may result in market
outcomes which are not Pareto efficient. How might the issues
caused by asymmetric information be reduced?
Identify four of the six reasons why the market mechanism may
not result in Pareto Efficient allocation of resources resulting in
market failure. Define briefly and provide one simple example for
each.
Explain how the presence of asymmetric information could result
in a market failure in a private health insurance market. Feel free
to use a supply and demand diagram to illustrate the effect of
asymmetric information.
What does it mean when a market fails?
If a situation is Pareto-efficient, are Pareto improvements
possible?
Does a Pareto improvement necessarily pass the cost-benefit
test? Is the converse true? Explain
Discuss how asymmetric information due to COVID-19 pandemic will
affect labor market outcomes (wage rates, employment, etc.) in
developing economies? What are some policy options to address
asymmetric information?
why is it important that a competitive market is Pareto
efficient? and what does the first fundamental theorem of welfare
economics tell us about market fail?