ECON 3317- Midterm Exam Guide - Comprehensive Notes for the exam ( 47 pages long!)
12 Oct 2017
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Lost utility from extra risk, extra utility from consumption: tradeoff- they can increase their wage by taking on more risk. Employer view: how much are they willing to reduce risk or allow it given they have to pay a certain wage to do it. Firm a not very costly to reduce risk- don"t need to cut wages by a lot- cool with lower risk because not as expensive to make it safer. Value of regulating risk: asbestos- used in us industry as insulation- thousands of ships in. Lecture 16: economics of opportunity; circumstances and choice. Two different views on equality of opportunity: generally, as a society, we think of equality of opportunity in two ways a. i. The level the playing field definition: during people"s formative years we should provide resources so that when it comes time to compete for positions (college jobs) all people have the attributes they need a. i. 1.
