Principles Of Economics 2e
2nd Edition
ISBN: 9781680920864
Author: Timothy Taylor, Steven A. Greenlaw, David Shapiro
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 15, Problem 8SCQ
Using two
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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 15 Solutions
Principles Of Economics 2e
Ch. 15 - Describe how each of these changes is likely to...Ch. 15 - Jonathan is a single father with one child. He can...Ch. 15 - Imagine that the government reworks the welfare...Ch. 15 - We have discovered that the welfare system...Ch. 15 - How does the TANF attempt to loosen the poverty...Ch. 15 - A group 0f 10 people have the following annual...Ch. 15 - Table 15.9 shows the share of income going to each...Ch. 15 - Using two demand and supply diagrams, one for the...Ch. 15 - Using two demand and supply diagrams, one for the...Ch. 15 - Here is one hypothesis: A well-funded social...
Ch. 15 - Here is a second hypothesis: A well-funded social...Ch. 15 - Which set of policies is more likely to cause a...Ch. 15 - Why is there reluctance on the part of some in the...Ch. 15 - How is the poverty rate calculated?Ch. 15 - What is the poverty line?Ch. 15 - What is the difference between poverty and income...Ch. 15 - How does the poverty trap discourage people from...Ch. 15 - How can the effect of the poverty trap be reduced?Ch. 15 - Who are the near-poor?Ch. 15 - What is the safety net?Ch. 15 - Briefly explain the differences between TANF, the...Ch. 15 - Who is included in the top income quintile?Ch. 15 - What is measured on the two axes of a Lorenz...Ch. 15 - If a country had perfect income equality what...Ch. 15 - How has the inequality of income changed in the...Ch. 15 - What are some reasons why a certain degree of...Ch. 15 - What are the main reasons economists give for the...Ch. 15 - Identify some public policies that can reduce the...Ch. 15 - Describe how a push for economic equality might...Ch. 15 - What goods and services would you include in an...Ch. 15 - If a family of three earned 20,000, would they be...Ch. 15 - Exercise 15.2 and Exercise 15.3 asked you to...Ch. 15 - Explain how you would create a government program...Ch. 15 - Many critics of government programs to help...Ch. 15 - Think about the business cycle: during a...Ch. 15 - Explain how a country may experience greater...Ch. 15 - The demand for skilled workers in the United...Ch. 15 - Explain a situation using the supply and demand...Ch. 15 - What do you think is more important to focus on...Ch. 15 - To reduce income inequality, should the marginal...Ch. 15 - Redistribution of income occurs through the...Ch. 15 - How does a society or a country make the decision...Ch. 15 - Explain what the long- and short-term consequences...Ch. 15 - In country A, the population is 300 million and 50...Ch. 15 - In country B, the population is 900 million and...Ch. 15 - Susan is a single mother with three children. She...Ch. 15 - A group of 10 people have the following annual...
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