Karolina drives by a eye-catching outdoor advertisement on her way to campus every morning. As she drives by, she finds that the print is too small to read. What principle does this demonstrate? Select one: а. Adaptation b. Absolute threshold. C. Perceptual vigilance d. Exposure
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- John and Sotiris live on trees in two different forests. They each have eight hours to work in a day. John can grow a Yam in 1 hour or raise a Zebra in 2 hours. Sotiris can grow a Yam in 2 hours or raise a Zebra in 4 hours. Both John and Sotiris consume equal numbers of Yams and Zebras. When calculating the welfare benefits of markets, the standard analysis only includes the parties involved in exchange. Using the American Opioid Crisis as an example, explain how poorly regulated markets can cause harm to third parties not involved in exchange.7) There is some popular unrest in a dictatorship. The population might be in a revolutionary mood, in which case they would be willing to violently overthrow the dictator, or just grumbling, in which case they would not. There is a 30% chance the population is in a revolutionary mood. The population knows their own type, but the dictator does not. After nature chooses whether the population is in a revolutionary mood, the population can decide to protest or not. The dictator observes the populations behavior, and then can peacefully resign or hold onto power. The dictator can make this choice whether or not the population protests. If the dictator holds onto power, the population can violently overthrow the dictator or not. The dictator gets 50 utility for retaining power, O utility if they peacefully resign, and -100 utility if they are overthrown. The revolutionary population gets 50 utility for the dictator resigning, 30 utility for overthrowing the dictator, and -50 utility for…29 Choice obliges us to give up something while it enables us to achieve something. What is this condition called? a) Marsall effect B) externality NS) trade off D) crowding out TO) Fisher effect
- Two officers are working in a police department. During a working day Officer One can either catch 20 criminals or she can write 60 reports. During a working day Officer Two can either catch 2 criminals of she can write 21 reports. The boss of the officers has the following utility function U=min(criminals; reports}. Officers want to make their boss as happy as possible. Find how many criminals will be optimally caught during the day.You have conducted a study to determine if there is independence or dependence between market segments (A-C) and prices the segments are willing to pay for a product. The following cross tabular output appears. Under $10 $11-$15 over $15 All A 50 30 20 100 50.00 30.00 20.00 33.33 27.27 50.00 16.67 10.00 6.67 50.00 36.67 13.33 0.000 1.212 3.333 B 40 50 10 100 40.00 50.00 10.00 26.67 45.45 25.00 13.33 16.67 3.33 50.00 36.67 13.33 2.000 4.848 0.833 C 60 30 10 100 60.00 30.00 10.00 40.00 27.27 25.00 20.00 10.00 3.33 50.00 36.67 13.33 2.000 1.212 0.833 All 150 110 40 300…Problem: Imagine you have two competing athletes who have the option to use an illegal and dangerous drug to enhance their performance (i.e., dope). If neither athlete dopes, then neither gain an advantage. If only one dopes, then that athlete gains a massive advantage over their competitor, reduced by the medical and legal risks of doping (the athletes believe the advantage over their competitor outweighs the risks from doping ). However, if both athletes dope, the advantages cancel out, and only the risks remain, putting them both in a worse position than if neither had been doping. What outcome do we expect from these two athletes? Please use ideas like concepts of monopolies, Oligopolies and Game Theory and Factor markets for this scenario.
- Persons A and B are roommates. Person A smokes and Person B does not. The index s measures how smoky the room is. It varies from s=0, where there is no smoke in the room, to s=1, when the room is filled with smoke. Thus, 1-s measures how "clean" the air in the room is. Person A's utility function is UA(XA,S)=XA+In(1+s), where xA is the amount of money Person A owns. Person B's utility function is uB(XB,1s)%3D3XB+2(1-s), where Xg is the amount of money Person B owns. Each person starts with an endowment of 5 units of money. Persch B has the legal right to a smoke-free room and there is a market for "emission right." At the Walrasian equilibrium, what will be the (per unit of smoke index) price p of the emission rights if the price of money is 1? O a. None of the other answers. O b. p=2/3 O c. p=1 O d. p=3/2 О е. р31/61Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the skirt: Store Travel Time Each Way Price of a Skirt (Minutes) (Dollars per skirt) Local Department Store 15 102 Across Town 30 85 Neighboring City 60 76 Juanita makes $42 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $42 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
- Persons A and B are roommates. Person A smokes and Person B does not. The index s measures how smoky the room is. It varies from s=0, when there is no smoke in the room, to s=1, when the room is filled with smoke. Thus, 1-s measures how "clean" the air in the room is. Person A's utility function is ua(XA,s)=Xa.S, where xA is the amount of money Person A owns. Person B's utility function is ug(xg, 1s)=Xg .(1-s)³, where xg is the amount of money Person B owns. Each person starts with an endowment of 5 units of money. Person A has the legal right to a fill up the room with smoke and there exists a market for smoke "abatements". At the Walrasian equilibrium, how much money will person B be left with? а. Хв31.25 ОБ. Хв32.25 O c. XB=0.25 O d. Xg=0.25 е. None of the other answers.The ultimatum game is a game in economic experiments. The first player (the proposer) receives a sum of money and proposes a fair proposal (F - 5;5) or unfair proposal (U - 8;2). The second player (the responder) chooses to either accept (A) or reject (R) this proposal. If the second player accepts, the money is split according to the proposal. If the second player rejects, neither player receives any money. 1 A 5:5 2 F R 0:0 U A 8:2 2 1. Find the subgame perfect Nash Equilibrium using backward induction. R 0;0 Time remaining: 01 :53 :32 Economics A dealer decides to sell an antique automobile by means of an English auction with a reservation price of $900. There are two bidders. The dealer believes that there are only three possible values, $7,200, $3,600, and $900, that each bidder’s willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingnesses to pay, and the probabilities for each of the two bidders are independent of the other’s valuation. Assuming that the two bidders bid rationally and do not collude, the dealer’s expected revenue from selling the car is approximately Group of answer choices $3,600. $2,500. $3,900. $5,400. $7,200.