a realistic example. Suppose you see a job advertisement in a local newspaper offering employment to individuals who want to humanely capture rabid raccoons in Central Park. The offer states that hourly compensation is $95.77. Why would this job offer such a high wage? How is this scenario related to our topic of incentives?
Q: 5.2 David gets $3 per week as an allowance to spend any way he pleases. Because he likes only peanut…
A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…
Q: The city of Fairyland has a labour force of 5000. 50 people lose their jobs each month and remain…
A: Since you have posted multiple questions, we will provide the solution to only the first question as…
Q: Babar's Bakery made $200 last month selling 100 loaves of bread. This month it made $350 selling 70…
A: The Price elasticity of demand determines how much is consumed when a product's price varies.…
Q: Classify each of the following items as a final good or service or an intermediate good or service,…
A: Final goods are produced products that are intended for immediate customer consumption. The items…
Q: The GATT strongly favors tariffs as a protective measure over quotas or other nontariff measures. It…
A: A nontariff measure is a trade restriction that is not in the form of a tariff. Nontariff measures…
Q: PM= PA+PB = Set gaga because of open access and indivisibility (i..e., no rival in consumption)…
A:
Q: Near money means: Select one: They do not function as a medium of exchange but they serve as a…
A: Money consists of coins, currency notes and demand deposits of the bank. It is directly used for…
Q: The statement that best describes the Asset Demand for Money: Select one: None of the options are…
A: The asset demand for money also called the speculative demand for money can be defined as the demand…
Q: What would happen to the equilibrium price and quantity of macaroni and cheese if consumers' income…
A: Equilibrium price and quantity are concepts in economics that describe the state of a market where…
Q: What does the demand for enrollments in your college look like? What is on the axes? How do tuition,…
A: A demand curve is a pictorial representation that helps in understanding the relationship between…
Q: Suppose that AS = 3SAT + 2SAX and that today's price is S(0) = 50. Find (i.e., derive) the PDF for…
A: Given: ∆S = 3S∆t + 2S∆X S(0) = 50 PDF for the price of S(1) after 1 year= ?
Q: Four neighbors, each with a vegetable garden, agree to share their produce. One will grow beans (B),…
A: The break-even point is the spot at which total cost and TR are equal, meaning there is no loss or…
Q: If resources R1 and R2 are substitutable, the decrease in price of R1 will Select one: Increase…
A: In economics, two goods or resources are substitutes when one good can replace another good as the…
Q: 1.28 Use economic equivalence to determine the amount of money or value of i that makes the…
A: Economic equivalence is a combination of interest rate and time value of money to determine the…
Q: profit repatriation risk of the country of Bhutan.
A: Profit repatriation risk refers to the uncertainty or difficulty that a company may face in…
Q: Economies of Scale What will happen to the cost of producing Teslas if the Shanghai gigafactory…
A: Economies of scale refer to the reduction in the average cost per unit of output that can be…
Q: 4. Suppose that the demand function for knit gloves is given by 150-5P + 3Pc +41 Q= = Where P = the…
A: Consumer surplus refers to the difference between willingness to pay and actual price of good.…
Q: (Figure: Labor Union Wages I) The figure represents a labor union with wage in dollars and quantity…
A: Demand curve is the downward sloping curve. The profit is maximized where MR = MC. So, Profit…
Q: A decrease in the supply of a product most likely would be caused by O An increase in business taxes…
A: The Demand for products or services is described as the desire of a consumer to purchase that…
Q: Let X = R2, let u: X→ R be given by u(x) = x²r3, and let be the preference relation on X given by…
A: The utility function is considered convex if the second derivative is positive. On the other hand,…
Q: A dairy firm has an inverse demand curve: P = 240 - 2Q. The firm faces constant marginal costs of…
A: Profit maximizing outcome is where the MR = MC And also profit is maximized where Marginal profit…
Q: For every hour up to 40 hours of work each week, Mary earns $16/hour, and for any extra hour in…
A: Labor market income is the income earned by working, that is, by providing labor services to the…
Q: The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: England France Hours Needed to Make 1 Number of Units Produced in 20 Unit of Hours Bread 1 5…
A: The production possibility schedule shows the trade-off between the production of two goods,…
Q: Consider the figure below. Suppose the true price of a health care service is P1. Suppose further…
A: Introduction A condition known as "moral hazard" occurs when one party engages in a risky activity…
Q: 1. Consider a household that buys two things: electricity and everything else. a. What is the…
A: Utility is the satisfaction that an individual gets from economic activities. The utility also…
Q: Find all the Nash equilibria and subgame perfect equilibria of the games in Figures 1 and 2
A: Nash equilibrium is a kind of state from which no player wants to deviate. Both the players involved…
Q: Over the year, the country's workers earned 50 in wages. Further, five came in net labor and capital…
A: There are three methods to evaluate the national income. It is the sum of income generated by the…
Q: A producer will supply 30 items at a price of $15 per item. For every $9 increase in price per item,…
A: A supply function is a tool utilized by economists to estimate the relationship between the price…
Q: What is the future worth amount of a series of equal quarterly payments of $1,000 for 20 years at an…
A: A current asset's Future Worth (FW), which predicts the asset's worth at some point in the future,…
Q: 39. An economy described by the AS/AD model: C = 13+.8YD, I = 10, T = 10, t =.25, G = 35,…
A: Y = 13+.8YD + 10, T = 10, t =.25, G = 35, NX = 10-5P-.1Y AS = 5P.
Q: Assume we have market with N>1 identical individuals who have individual demand functions q;=1 - p.…
A: The demand function is a mathematical representation of the relationship between the quantity of a…
Q: Please provide a unique and original example of a prisoner's dilemma. Explain the gane draw out the…
A: The prisoner's dilemma is a classic example of a situation where two individuals acting in their own…
Q: b. Suppose that the price of scones = $3, coffee costs $2.5 per cup, and average annual disposable…
A: Demand is a quantity that a consumer wishes to purchase at a given price for a given time period.…
Q: Labour 300 Labour 600 Labour 900 Physical Capital Year 1 800 Answer 800 800 Physical Capital Year 2…
A: Output per worker is a measure of productivity calculated by dividing the total output by the number…
Q: Why do you even need a checking account? Why not just use cash?
A: A checking account is a type of bank account that allows individuals to easily deposit, withdraw,…
Q: In a graph of the aggregate demand curve, an increase in investment by businesses is represented by…
A: Aggregate demand is the sum of consumption spending, investment, government purchases, and net…
Q: Which of the following statements about 'rational" agents is true? O Rational agents have…
A: Rational people put efforts to optimize their own preferences in a fullest way. A rational agent…
Q: Suppose – as we are being told – that new apps like ChatMPG are causing a burst in investment…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Law of supply states that as the price of a good O increases, suppliers want to supply less of that…
A: Supply is the quantity of a commodity that a seller is willing and able to sell at each possible…
Q: Consider an economy in which the marginal product of labour is given by MPN = A(150 − N), where N is…
A: Labour market: labour market is a market where the firms and households interact. The firms demand…
Q: 2. Consider a pharmaceutical company considering research and development of a new drug. They…
A: Socially optimum output is the optimal distribution of resources in society, taking into account all…
Q: Currency (Coins and Paper Money), Demand Deposits and DD’s offered by other institutions are…
A: Money supply refers to the holdings of liquid assets by banks and public. The measures of money…
Q: The following table shows the amounts of additional satisfaction (marginal utility) that Ross would…
A: Utility is defined as the usefulness or the satisfaction a consumer derives from a good or service…
Q: The government imposes a $1000 per year license fee on all pizza restaurants. As a result, which…
A: The graph showing the function of the total quantity produced is production cost said to be the cost…
Q: 5.1 Thirsty Ed drinks only pure spring water, but he can purchase it in two different-sized…
A: The total amount of satisfaction that customers derive from consuming a commodity is the utility.…
Q: Suppose a firm’s hourly marginal product of labour is given by MPN = 0.2(200 − N), where N is the…
A: Full employment is the condition where all people who are available and searching for work can find…
Q: The price rises from $10 to $11, while the Qs rise from 80 to 88 Column A 1. 2. 3. d 4. b % change…
A: Elasticity measures the responsiveness of one variable to changes in another. This allows one to…
Q: Suppose the cost of flying a 200-seat commercial airplane is as follows: Crew wages: 35617 AED…
A: Total Cost is the sum of two different costs incurred by a service or goods provider . Total Cost =…
Q: The following data show the closing stock price of MNM Corporation for the last seven trading days.…
A: Mean: The mean, also known as the average, is a measure of central tendency calculated as the sum of…
![2. Describe what is meant by incentives. How do people typically respond to incentives? Provide
a realistic example. Suppose you see a job advertisement in a local newspaper offering
employment to individuals who want to humanely capture rabid raccoons in Central Park. The
offer states that hourly compensation is $95.77. Why would this job offer such a high wage?
How is this scenario related to our topic of incentives?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3c153fd-cd9a-445a-ae07-2f5ef1ceddfb%2F8b7672b1-9408-4413-b937-0dfc118fea32%2Fztk1h5r_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- 1) John is operating an internation business in the United Stateds of American and is focused on the limitation or short-term impact of an issue. It can be said that John has a ............. 2) The grestest good for the greatest number of persons is known as the ............... approach. 3) this theorgy states that a country's wealth was deternmined by the amount of its gold and silver holding. It is ...........?Suppose that Congress passes a law requiringemployers to provide employees some benefit (suchas healthcare) that raises the cost of an employee by$4 per hour.a. What effect does this employer mandate haveon the demand for labor? (In answering this andthe following questions, be quantitative whenyou can.)b. If employees place a value on this benefit exactlyequal to its cost, what effect does this employermandate have on the supply of labor?c. If the wage can freely adjust to balance supply anddemand, how does this law affect the wage andthe level of employment? Are employers better orworse off? Are employees better or worse off?d. Suppose that, before the mandate, the wage in thismarket was $3 above the minimum wage. In thiscase, how does the employer mandate affect thewage, the level of employment, and the level ofunemployment?e. Now suppose that workers do not value themandated benefit at all. How does this alternativeassumption change your answers to parts(b) and (c)?It is the morning commute in Congestington, DC. Of 100 drivers, eachdriver is deciding whether to take the toll road or take the back roads. Thetoll for the toll road is $10, while the back roads are free. In deciding ona route, each driver cares only about income, denoted y, and his traveltime, denoted t. If a driver’s final income is y and his travel time is t, thenhis payoff is assumed to be y - t (where we have made the dollar value ofone unit of travel time equal to 1). A driver’s income at the start of the dayis $1,000. If m drivers are on the toll road, the travel time for a driver onthe toll road is assumed to be m (in dollars). In contrast, if m drivers takethe back roads, the travel time for those on the back roads is 2m (again,in dollars). Drivers make simultaneous decisions as to whether to take thetoll road or the back roads.a. Derive each player’s payoff function (i.e., the expression that gives usa player’s payoff as a function of her strategy profile.)b. Find a Nash…
- Detail the difference between behavioral and non-behavioral economics. Suppose there is a proposal to replace workplace hiring system with a review of applicants’ resume and a skills test, and to eliminate in-person interviews. Given what has been learned about Systems 1 and 2, detail why one would think this hiring method work better or worse than an interview. What might be the pitfalls of relying on each method? In his book 'Blink', Gladwell described examples of situations when System 1 snap intuitive judgements can be more accurate than System 2 decisions? What are 2 examples of such judgements from his book. Should we always trust intuition more than we trust our rational thinking? Or should we trust system 2 more in most other life and work situations?Give typing answer with explanation and conclusion What does Caroline Criado Perez mean by the term “the default male”?The way the workers’ compensation system works now, employees permanently injured on the jobreceive a payment of $X each year whether they work or not. Suppose the government were toimplement a new program in which those who did not work at all got $0.5X but those who did work got$0.5X plus workers’ compensation of 50 cents for every hour worked (of course, this subsidy would bein addition to the wages paid by their employers). What would be the change in work incentivesassociated with this change in the way workers’ compensation payments are calculated?
- In Autarka 2 amusement parks, Alfonso's wonderland and Bernice's rides there are 9600 people who like to visit an amusement park. Each of theseconsumers wants to visit one park once. The consumers' homes are evenly spaced acrossthe island, and they each suffer a disutility of $24 for each kilometre they travel to reachan amusement park. With their current technology, it costs an amusement park $12 for each customer theyhost. At present, the equilibrium price for an amusement park ticket is $36, and each firmhas a profit of $115,200. This market is best modelled as Hotelling competition. Fixed costs should be neglected. Treat this market as a one-shot game. Do not consider repetition or associated phenomena such as collusion or predatory pricing. Assuming Bernice's rides has a profit function of Nb(Pa,Pb) = 200(PaPb - Pb^2 + 36Pb -12Pa - 288), what is Bernice's rides best response function?In Autarka 2 amusement parks, Alfonso's wonderland and Bernice's rides there are 9600 people who like to visit an amusement park. Each of theseconsumers wants to visit one park once. The consumers' homes are evenly spaced acrossthe island, and they each suffer a disutility of $24 for each kilometre they travel to reachan amusement park. With their current technology, it costs an amusement park $12 for each customer theyhost. At present, the equilibrium price for an amusement park ticket is $36, and each firmhas a profit of $115,200. This market is best modelled as Hotelling competition. Fixed costs should be neglected. Treat this market as a one-shot game. Do not consider repetition or associated phenomena such as collusion or predatory pricing. Find the profit function for Alfonso's Wonderland for the case in which their marginal cost is $6.One of the following findings of the behavioral economics is widely adopted by the policy makers across the world Humans place greater welfare weights on A avoiding loss than experiencing equivalent gain. People prefer to cut economic loss more than their social loss. Policies aimed at enhancing people's gains C have been found to be more effective than the policies aimed at minimising people's losses Mankind behaves rationally irrespective of D their socio-psychological situations.
- 3:22 l LTE Question 11 Unanswered 2 attempts left Many professional sports teams operate under a salary cap. This means that teams typically have a fixed amount of money that they can spend on players' salaries - that is, a salary cap. This is true of the National Basketball Association (NBA), for example. Suppose that the NBA has a salary cap of $100 million dollars, and a team has $30 million available to sign new players. That is, $70 million has already been committed to player salaries. The team has two further possibilities: either sign a star player for $30 million, or sign two good, solid supporting players for $15 million each. What is the opportunity cost of signing the star player, assuming the team spends its full budget? A 2 supporting players 1 star player $30 million D There is no opportunity cost B.a. Draw the wage-schooling locus for someone for whom the returns to schooling decrease through college but increase after college. (Assume college is completed after 16 years of schooling and that one can receive at most 6 years of postcollege schooling.) b. On a new graph, plot the marginal rate of return to schooling implied by the wage-schooling locus described in part a. c. What can be said about a college graduate who faces the wage-schooling locus described in part a?1) Consider observable effort. Assume that if the Agent does not accept the wage the Principal offers his outside option gives him a net utility of v =2. The probability of high profit under e=1 is %, the probability of high profit under low effort is 1/4. Calculate the minimum wage that the agent will accept to work and supply the asked effort when the Principal asks him to supply e=0, and e=1. Let us call these wages wo and wi. Now, assume that instead of offering him a flat wage, the Principal is offering the agent a wage schedule (, w) where the agent receives when the (gross) profit is High and w when the (gross) profit is low. Calculate all the lowest cost wage schedules the agent will accept to supply e=1, and e=D0. Does the principal's expected net profit change when he pays the minimum cost wage schedule instead of the flat wage minimum cost wage? Explain the intuition for your answer.
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)