Public policies to increase productivity discussion



I have three questions I need help with. I have uploaded the worksheet.Attachment preview

Module 7 Assignment

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

1. Give an example of adverse selection and an example of moral hazard using homeowners insurance.

2. What’s the difference between firm-specific risk and market risk? Will diversification eliminate one or both? Explain.

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