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Author Question: Explain the relationship between relative prices and the slope of a country's production ... (Read 125 times)

Bernana

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on: Jun 30, 2018
Explain the relationship between relative prices and the slope of a country's production possibilities frontier.
 
  What will be an ideal response?

Question 2

What agreement has been reached to reduce the moral hazard problem and what does it require?
 
  What will be an ideal response?


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atrochim

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Under perfect competition, the two slopes will be equal. This insures that production occurs at the point where price equals marginal cost.

Answer to Question 2

The Basel Capital Accord, which sets capital requirements, requirements for supervisory review, and for requirements for information disclosure.


Bernana

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Reply #2 on: Jun 30, 2018
Correct answers!


atrochim

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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