PRINCIPLES OF ECONOMICS
14th Edition
ISBN: 2810015433483
Author: OpenStax
Publisher: OpenStax
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Textbook Question
Chapter 1, Problem 28CTQ
Can you think of ways that globalization has helped you economically? Can you think of ways that it has not?
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2. Question
The 'Democratic Family' consists of three members {mother m, father f, daughter
d}, that have different preferences with respect to how much money X € [0,8]
they think should be invested in the new family car. These preferences can be
represented by the following utility functions:
-
Mother m: um(X) = 2X - X²
Father f: uf(X) = 10X - X²
- Daughter d: ud(X) = 4X - X²
Calculate for each family member (f, m, d) the preferred amount of money
to invest in the new car denoted by X; for i = {m, f,d}. Assume that
(Xf, Xm, Xd) are the three alternatives on which the family must decide. Show
that each family member has rational preferences over this domain.
Preferences on the family level are determined by pairwise majority voting (all
family members vote on two alternatives). Derive the family preference and
check whether it is rational.
Assume that the final family decision is made by conducting sequential pair-
wise majority voting, where the loosing alternative is eliminated. Does…
3. Question
You invented a new lateral-flow test for asymptomatic Covid-19 detection,
where saliva is entered into a test-tube and then the result is shown directly
on the device. However, to save on costly chemicals you designed the tests
such that it always reports a negative test result. Assume that the incidence
rate is 5 per 1000 and that your test is used for detection of asymptomatic
cases (without symptoms).
(a) Calculate the probability that 100 randomly determined volunteers receive
a correct test result by using the AND-rule and the OR-rule. Can your
test be qualified as a diagnostic test?
(b) The health authorities are investigating the performance of your test.
Government guidelines require a specificity (conditional probability to re-
ceive a negative test result given that the test-taker is not infected with
COVID19) of at least 97% and a sensitivity (conditional probability to
receive a positive test result given that the test-taker is infected with
COVID-19) of at…
3. Question
You invented a new lateral-flow test for asymptomatic Covid-19 detection,
where saliva is entered into a test-tube and then the result is shown directly
on the device. However, to save on costly chemicals you designed the tests
such that it always reports a negative test result. Assume that the incidence
rate is 5 per 1000 and that your test is used for detection of asymptomatic
cases (without symptoms).
(a) Calculate the probability that 100 randomly determined volunteers receive
a correct test result by using the AND-rule and the OR-rule. Can your
test be qualified as a diagnostic test?
(b) The health authorities are investigating the performance of your test.
Government guidelines require a specificity (conditional probability to re-
ceive a negative test result given that the test-taker is not infected with
COVID19) of at least 97% and a sensitivity (conditional probability to
receive a positive test result given that the test-taker is infected with
COVID-19) of at…
Chapter 1 Solutions
PRINCIPLES OF ECONOMICS
Ch. 1 - What is scarcity? Can you think of two causes of...Ch. 1 - Residents of the town of Smithfield like to...Ch. 1 - A consultant works for 200 per hour. She likes to...Ch. 1 - A computer systems engineer could paint his house,...Ch. 1 - What would be another example of a system in the...Ch. 1 - Suppose we extend the circular flow model to add...Ch. 1 - What is an example of a problem in the world...Ch. 1 - The chapter defines private enterprise as a...Ch. 1 - Why might Belgium, France, Italy, and Sweden have...Ch. 1 - Give the three reasons that explain why the...
Ch. 1 - What are three reasons to study economics?Ch. 1 - What is the difference between microeconomics and...Ch. 1 - What are examples of individual economic agents?Ch. 1 - What are the three main goals of macroeconomics?Ch. 1 - How did John Mayhem Keynes define economics?Ch. 1 - Are households primarily buyers or sellers in the...Ch. 1 - Are firms primarily buyers or sellers in the goods...Ch. 1 - What are the three ways that societies can...Ch. 1 - What is globalization? How do you think it might...Ch. 1 - Suppose you have a team of two workers: one is a...Ch. 1 - Why would division of labor without trade not...Ch. 1 - Can you think of any examples of free goods, that...Ch. 1 - A balanced federal budget and a balance of trade...Ch. 1 - Macroeconomics is an aggregate of what happens at...Ch. 1 - Why is it unfair or meaningless to criticize a...Ch. 1 - Suppose, as an economist, you are asked to analyze...Ch. 1 - Why do you think that most modern countries...Ch. 1 - Can you think of ways that globalization has...
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- I need expert handwritten solutionsarrow_forwardmachine A operated manually cost 2000naira has a life of 2 years, while an automatic machine B cost 5000naira but has a life of 4 years,operating cost for machine A is 4000naira per year while of machine B is 3000naira only, which should be purchased?consider 10% interest I need expert handwritten solutionsarrow_forwardDon't used Ai solutionarrow_forward
- not use ai pleasearrow_forwardUse the following table to work Problems 5 to 9. Minnie's Mineral Springs, a single-price monopoly, faces the market demand schedule: Price Quantity demanded (dollars per bottle) 10 8 (bottles per hour) 0 1 6 2 4 3 2 4 0 5 5. a. Calculate Minnie's total revenue schedule. b. Calculate its marginal revenue schedule. 6. a. Draw a graph of the market demand curve and Minnie's marginal revenue curve. b. Why is Minnie's marginal revenue less than the price? 7. a. At what price is Minnie's total revenue maxi- mized? b. Over what range of prices is the demand for water from Minnie's Mineral Springs elastic? 8. Why will Minnie not produce a quantity at which the market demand for water is inelastic?arrow_forwardDon't give AI generated solution otherwise I will give you downward Give correct answer with explanationarrow_forward
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