Asymmetric Information. Based on Wheelan's discussion, explain what is
asymmetric information and how it affects markets? When you buy goods
and services how often do you think you have perfect information? Give
an example from your own experiences.
Moral hazard. Based on Szechman and Anderson's discussion, explain what
is moral hazard and how it affects markets? What do you think of the
broad definition of markets by SA? One might say its everywhere
economics. Give an example of moral hazard from your own experiences.
Discuss the key points that the IMF and Wheelan make about
externalities. Give examples of negative and positive externalities that
you have encountered.