4. 19.Recall the following public goods game from the class, where two roommates are trying to figure outhow much effort to exert to clean the apartment. They could either choose to exert low level ofefforts, elow or they could exert higher level of effort, ehigh. Their payoffs are given in the followingmatrix:elowehighherder 2elow3,35,2herder 1ehigh2,54,4The Nash equilibrium of this game (is or is not) Pareto efficientIn the Nash Equilibrium, there is (over-supply or under-supply) of effort by the tworoommates de to (positive or negative) externality problem.20.Pigouvian taxes or subsidies are a[ Select ]solution to externality problemwhile Coase's theorem is ; v[ Select ]solution to the same problem.government-backedprivate marketPlease fill in both bank using government- backed or private market

Given information 2 players 2 strategy set for each

19. Recall the following public goods game from the class, where two roommates are trying to figure out how much effort to exert to clean the apartment. They could either choose to exert low level of efforts, elow or they could exert higher level of effort, ehigh_ Their payoffs are given in the following matrix: elow ehigh herder 2 elow 3,3 5,2 herder 1 ehigh 2,5 4,4 The Nash equilibrium of this game (is or is not) Pareto efficient

19. Recall the following public goods game from the class, where two roommates are trying to figure out how much effort to exert to clean the apartment. They could either choose to exert low level of efforts, elow or they could exert higher level of effort, ehigh_ Their payoffs are given in the following matrix: elow ehigh herder 2 elow 3,3 5,2 herder 1 ehigh 2,5 4,4 The Nash equilibrium of this game (is or is not) Pareto efficient

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below. Month in which student poll was taken Average of students’ responses as MPC March 0.41 June 0.30 September 0.22 December 0.56 What do these MPC’s imply about the students’ thinking over the course of the year? (Enter response here.) What is likely happening in the economy during the same period of time?
1. What is the relationship between working hours and wage levels? (A). An increase in the wage rate increases working hours if the substitution effect dominates the income effect. (B). An increase in the wage rate reduces the hours worked if the dominating effect is a substitution effect. (C). A decrease in the wage rate increases working hours if the substitution effect dominates the income effect. (D). Answers (A) and (B) are correct. (E). Answers (A) and (C) are correct.
9. Behavioral economics Indicate whether each of the following examples of behavior is consistent with the way the traditional economic framework suggests people should act, or if it is reserved for behavioral economists to examine. Example Some people would be willing to pay money to lower the incomes of others. Some people treat $60 they earn differently from $60 they win in a random drawing. Some people sacrifice disposable income to help their children pay for college. Some people would turn down a new, higher-paying job if it meant spending less time with their family. Consistent with the Predictions of Traditional Economic Models Reserved for Behavioral Economics
Question 7 (10 points) Listen Figure 2-7 HOURS WITHOUT SLEEP Refer to Figure 2-7. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep? The less coffee a person drinks per day, the more time he can go without sleep. There is no relationship betwveen how much coffee per day a person drinks and how long he can go without sleep. The more coffee a person drinks per day, the more time he can go without sleep. The more coffee a person drinks per day, the less time he can go without sleep. Question 8 (10 points) V Saved CUPS OF COFFEE PER DAY
5. (12) Max is stocking up on ice cream and cookies; ice cream costs $2 and cookies cost 50 cents ($.50). The marginal utility gained from each treat is given in the table below. If Max is a rational utility maximizer and has $8 to spend, how many of each treat will they purchase, and in what order? Show your work. Qice cream MU of ice Qcookies MU of cream cookies 1234567 40 1 9 32 2 9 26 3 7 18 4 5 8 5 3 6 6 3 4 7 1
Number of Units of Commodity 5 6 7 D. 116 8 25. Refer to the above table. What is the marginal utility of the fourth unit? A. 36 B. 44 C. 80 Total Utility 36 80 150 252 350 440 26. Refer to the above table. The addition of which unit has the greatest marginal utility? A. Fifth B. Sixth C. Seventh D. Eighth 27. Refer to the above table. At what consumption level for this product does diminishing marginal utility set im A. 4 units 8.5 units C. 6 units D. 7 units
（D）Detailed calculation steps