Question
1. Why do cab drivers in Cuba make more than doctors or engineers? 2. What role do incentives play in Cuba's illegal economy? 3. A
1. Why do cab drivers in Cuba make more than doctors or engineers?
2. What role do incentives play in Cuba's illegal economy?
3. A "rational decision" is described as a decision where the benefit is greater than the cost. What are the benefits of participating in Cuba's illegal economy? What are the costs? Are Cubans making rational decisions by participating in these illegal markets?
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Economics Principles and Policy
Authors: William Baumol, Alan Blinder
13th edition
1305280595, 1305280598, 9781305465626 , 978-1305280595
