Research Assignment #1 BA 206 Topics in Economics

RA #1 – Rough Draft is due on Monday in Week 2 by 11:59pm EST
RA #1 – Final Draft is due on Monday in Week 3 by 11:59pm EST
Late research assignments and emailed submissions will NOT be accepted for credit.
Each submission will be checked for plagiarism with SafeAssign in Blackboard.
In accordance with university policy, all forms of plagiarism will be reported to the School of Business as a violation of the academic dishonesty policy.
Background:
In any course it’s difficult for an instructor to cover *everything*. Each economic concept listed below can create inefficiencies and pose interesting problems in both free market economies and command economies organized by national governments.
Directions:
o Students may work in groups of 2. However, each group member must contribute to each topic; don’t simply divide the assignment into pieces for each member to work on.
o Make sure to fully cite your sources within the text and include a references page.
o Do not use Wikipedia, Investopedia, or your textbook as sources.
o If a website gives confusing definitions and examples… try another source.
o DO NOT simply copy and paste information from the Internet. (This is plagiarism.)
o For each question, provide a general definition for each economic concept in your own words (paraphrase). Be careful not to use an example as a definition.
o Provide one example for each topic, but do not use the specific examples below. Students working in groups of two must provide three examples for each topic.
1. Fallacy of Composition:
(Hint: Latika is from India and speaks Hindi. Does that mean all Indians speak Hindi?)
2. Fallacy of Association as Causation:
(Hint: I notice that every time I get my car washed, it rains the next day! This would work out great if I were a farmer; if I needed rain for my crops I could just wash my car.)
3. Principal Agent Problem:
(Hint: This can create problems in corporations with CEOs and other top managers.)
4. Moral Hazard:
(Hint: Would you drive an uninsured car more cautiously than a fully insured car?)
5. Adverse Selection:
(Hint: Many states have Lemon Laws regarding the sale of used cars. Adverse selection can also pose problems in the healthcare and insurance industries.)

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