The fairness of the given situation.

Question

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Answer 1

Question

Chapter 11, Problem 1DQ

To determine

The fairness of the given situation.

Expert Solution & Answer

Explanation of Solution

In the given situation, both the proposals are not fair for poor people. Such people have less discretionary income and may cut back the usage more than the other people. The group of people who are unfairly harmed are those who use large quantities of water or electricity and they face difficulty in cutting back. In fact, questions related with fairness are much difficult to answer by the economists. The criteria for efficiency are objective, but the criteria for fairness are subjective. Thus, the better way to do is to explain the criteria clearly.

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Students have asked these similar questions

Please answer questions D-H, I have already answered A , B,C but it may help you to still solve them yourself. Thank you!

2. A firm’s production function is given by:Q = 10KLThe unit capital and labour costs are 2 and 1 pounds respectively. The firm is contracted to produce2000 units.(a) Write out the optimisation problem of the firm. (b) Express this problem using a Lagrangian function. (c) Find values of K and L which fulfil the contract with minimal cost to the firm. (d) Calculate the total cost to the firm.

3. Consider the following estimated regression equation, estimated using a sample of firms, where RDis total firm spending on research and development in USD ($), Revenue is total firm revenuein USD ($), and W ages is the firms’ total spending on wages in USD ($) (standard errors inparentheses):RDd = 1000(600)+ 0.5(0.1)Revenue + 1.5(0.5)W ages,(a) Interpret the coefficients on each of the explanatory variables. (b) Which of the three coefficients are statistically significant at the 5% level of significance? Howdo you know? A researcher runs a two-sided statistical test of the null hypothesis that both the coefficients onthe explanatory variables above are jointly equal to 0.25 (mathematically, that β1 = β2 = 0.25),and reports a p-value of 0.045.(c) What does this p-value mean for the outcome of the test? (d) What would an appropriate two-sided alternative hypothesis look like?

Answer 2

Question

Chapter 11, Problem 1DQ

To determine

The fairness of the given situation.

Expert Solution & Answer

Explanation of Solution

In the given situation, both the proposals are not fair for poor people. Such people have less discretionary income and may cut back the usage more than the other people. The group of people who are unfairly harmed are those who use large quantities of water or electricity and they face difficulty in cutting back. In fact, questions related with fairness are much difficult to answer by the economists. The criteria for efficiency are objective, but the criteria for fairness are subjective. Thus, the better way to do is to explain the criteria clearly.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 1DQ

To determine

The fairness of the given situation.

Expert Solution & Answer

Explanation of Solution

In the given situation, both the proposals are not fair for poor people. Such people have less discretionary income and may cut back the usage more than the other people. The group of people who are unfairly harmed are those who use large quantities of water or electricity and they face difficulty in cutting back. In fact, questions related with fairness are much difficult to answer by the economists. The criteria for efficiency are objective, but the criteria for fairness are subjective. Thus, the better way to do is to explain the criteria clearly.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1DQ

To determine

The fairness of the given situation.

Expert Solution & Answer

Explanation of Solution

In the given situation, both the proposals are not fair for poor people. Such people have less discretionary income and may cut back the usage more than the other people. The group of people who are unfairly harmed are those who use large quantities of water or electricity and they face difficulty in cutting back. In fact, questions related with fairness are much difficult to answer by the economists. The criteria for efficiency are objective, but the criteria for fairness are subjective. Thus, the better way to do is to explain the criteria clearly.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1DQ

To determine

The fairness of the given situation.

Expert Solution & Answer

Explanation of Solution

In the given situation, both the proposals are not fair for poor people. Such people have less discretionary income and may cut back the usage more than the other people. The group of people who are unfairly harmed are those who use large quantities of water or electricity and they face difficulty in cutting back. In fact, questions related with fairness are much difficult to answer by the economists. The criteria for efficiency are objective, but the criteria for fairness are subjective. Thus, the better way to do is to explain the criteria clearly.

Answer 6

Chapter 11, Problem 1DQ

To determine

The fairness of the given situation.

Expert Solution & Answer

Explanation of Solution

In the given situation, both the proposals are not fair for poor people. Such people have less discretionary income and may cut back the usage more than the other people. The group of people who are unfairly harmed are those who use large quantities of water or electricity and they face difficulty in cutting back. In fact, questions related with fairness are much difficult to answer by the economists. The criteria for efficiency are objective, but the criteria for fairness are subjective. Thus, the better way to do is to explain the criteria clearly.

Answer 7

Chapter 11, Problem 1DQ

To determine

The fairness of the given situation.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the given situation, both the proposals are not fair for poor people. Such people have less discretionary income and may cut back the usage more than the other people. The group of people who are unfairly harmed are those who use large quantities of water or electricity and they face difficulty in cutting back. In fact, questions related with fairness are much difficult to answer by the economists. The criteria for efficiency are objective, but the criteria for fairness are subjective. Thus, the better way to do is to explain the criteria clearly.