Foundations of Economics, Student Value Edition (8th Edition)
Foundations of Economics, Student Value Edition (8th Edition)
8th Edition
ISBN: 9780134489230
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 1, Problem 6SPPA
To determine

To explain:

The incentives that would have changed, if, to hire an actor Mr. C, a double pay is paid who was offered a part in another movie, and the way the changed incentives had affected the choices of the people.

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Problem: An art museum is opening a new exhibit soon and wants to know what percentage of museum attendees will return to see the new exhibit. During two afternoons, a Thursday and a Saturday, they ask randomly-selected people exiting the museum, "Would you consider returning for our exciting new exhibit opening in two weeks?" What was good about this survey? What could be improved?
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Question 5 The economics of obesity. Some economists have been analyzing the question of why people have been gaining weight in the last few decades. According to these economists, like anything else, eating involves two types of costs. First, the explicit cost is the price we pay at the grocery store to buy the stuff. Second, the implicit cost is all the time and effort we expend to prepare the food.  Before 1960s, food was mostly prepared by household members at home. It could take a few hours to put the dinner on the table. After 1960s several things happened that reduced both the explicit and implicit cost of food. Advances in technology in agriculture and elsewhere reduced the explicit cost (the market price) of food. Second, automobile became the dominant mode of transportation making it fast and easy to go out for fast food. This reduced the implicit cost of food. Moreover, the participation of women in labor force doubled (from around 30% of women to around 60%).  This meant…
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