EBK PRINCIPLES OF MICROECONOMICS
12th Edition
ISBN: 9780134069180
Author: Oster
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 3.5P
To determine
Drawback of statements.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following table shows how much utility Taran gets from watching his favorite teams, measured in "utils" (units of satisfaction).
Team
Manchester United
Seattle Kraken
Seattle Mariners.
Seattle Seahawks
Seattle Sounders.
Seattle Storm
Utils
68
81
78
64
72
86
Suppose Taran can only watch one of his favorite teams play. Assuming the cost to watch each team is the same, which team will
Taran choose to watch?
Which of the following would be the least likely thing an economist would study?
What new platforms are teens and young adults using to download music and movies?
What is the effectiveness of a new $50 million government campaign to keep teens from vaping?
What types of movies do children like to watch in the summer?
What are the health effects of new energy drinks on young consumers?
The rules of politics are not always the same as the rules of economics. In discussions of setting budgets for government agencies, there is a strategy called “closing the Washington Monument.” When an agency faces the unwelcome prospect of a budget cut, it may decide to close a high-visibility attraction enjoyed by many people (like the Washington Monument).
Is this strategy economically efficient? In other words, does it minimize the utility loss from a budget cut? Explain.
If this strategy is not economically efficient, what is the incentive to pursue such a strategy?
Knowledge Booster
Similar questions
- 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.arrow_forwardStuck on question for hours. Question in Image attachment. Thanks for your help :)arrow_forwardOne of the principles of economics is that people respond to incentives. Using this principle, discuss how a tax imposed on people who refuse to get vaccinated against COVID-19 virus affects the national level of vaccination coverage.arrow_forward
- Question 10 Which of the following startements about network externalities is CORRECT? Air pollution is an example of a network externality. For a good with network externalities, the number of people who are willing to buy a unit of the good is uniquely determined by the price. Network externalities are always positive. The manufacturer of a new good with network externalities might give away a free version of the good. For a good with network externalities, one person's valuation of the good is always increasing in the number of other people using the good.arrow_forwardDoes the Washington Monument strategy cut the items with the highest marginal utility or the lowest marginal utility?arrow_forwardWhat do you think of the ethics of using unconscious nudges to alter people’s behavior?arrow_forward
- What are some examples of loss aversion in everyday life? (i.e how do we experience loss aversion when shopping for groceries?)arrow_forward1. Road construction is going on Riccarton Road. 100 Uber drivers want to drop their passengers at the airport. Each driver is deciding whether to take Riccarton Road or take Blenheim Road. The cost of travelling through Riccarton Road is $10 (additional fuel required due to slow traffic), while the Blenheim Road route has a low fuel cost (theoretically let's assume $0) but takes more time to reach the airport. In deciding on a route, each driver cares only about income, denoted i, and his travel time, denoted t (where we have made the dollar value of one unit of travel time equal to 1). Driver's payoff is assumed to be his/ her profit (income - cost of travelling, including travel time). Assume that each driver has same income of $500. If m drivers are on Riccarton Road, the travel time for a driver on Riccarton Road is assumed to be m (in dollars). In contrast, if m drivers take Blenheim Road, the travel time for those on the Blenheim Road is 2m (again, in dollars). Drivers make…arrow_forwardIf a highway is made safer, the benefit is fewer deaths and injuries. Explain the following two ways that economists put a dollar value on fewer deaths and injuries: (a) revealed preference and (b) contingent valuation.arrow_forward
- in the text, the author describes an experiment in which a group of children were told a hypothetical story in which an adult punished a neutral act, such as a child practicing a musical instrument. Afterward, the children classified the act of playing a musical instrument as bad behavior. This experiment lends credence to the power of: a. modeling. b. reinforcement. c. the “blank slate.” d. cognitive dissonance.arrow_forwardWhether a certain criterion is determinant or not is independent of the situation in which a product is consumed. True False In the context of disposing of consumer refuse, recycling cuts down on garbage while providing raw materials for other new products. True False Which of the following is a fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a positive outcome? a. Hope b. Confusion c. Surprise d. Pride Which of the following best describes chronic, repetitive purchasing behaviors that are in response to negative events or feelings? a. Addictive consumption b. Impulsive purchasing c. Window shopping d. Compulsive buying Retaliatory revenge is when a consumer yells insults and makes a public scene in an effort to harm the business. True Falsearrow_forward11) The state of South Colorado unexpectedly had an extra 500 million in tax revenue in the last year. The Governor and the Speaker of the State House are discussing how to spend it. Both will have to agree on any proposal, and nothing is spent until they agree. The Governor wants to spend all the excess money on public safety by hiring more police officers etc. The Speaker wants to spend all the excess money on improving education. They can divide the money however they wish. Each gets utility equal to the amount of money spent on their preferred project. So, if 300 million goes to public safety, the Governor would get 300 utility and the Speaker would get 200. Assume the Governor has a discount rate of 0.7, while the Speaker has a discount rate or 0.9. Develop a Rubinstein bargaining game to determine how the money will be divided. (Assume the Governor makes the first offer). Draw the game, and then solve it. How much money will be devoted to each program?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning