Read chapters  

Chapter 19: Adverse Selection          

Chapter 20: The Problem of Moral Hazard   

Chapter 21: Getting Employees to Work in the Firms Best Interest

Chapter 22: Getting Divisions to Work in the Firm’s Best Interests

and then type a two page paper regarding what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.  Define and describe what you thought was worthy of your understanding in half a page, and then explain why you felt it was important, how you will use it, and/or how important it is in managerial economics