Microeconomics Exam 3 Essays Total 200 Points

answer those Questions please --- Microeconomics Exam 3 Essays Total 200 Points Please use economics theories you learned from the above chapters to answer in details the following questions: 1. What are negative externalities and positive externalities? How do they affect supply and demand curves? 2. Explain what is meant by the principal–agent problem, and relate it to shirking. What are the different pay incentive plans that correct for shirking on the job? How does profit sharing reduce shirking? What is the reason for efficiency wages? 3. “The possibility for gains of trade is due to the fact that different countries face different resources endowments, production costs and geographical locations.” Interpret and expand with examples. 4. What factors have contributed to increased income inequality since 1975? 5. How does international economics affect you directly as a consumer and as a future worker? How do international events and circumstances touch you as a student in an U.S. university or college?