Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 17, Problem 1.3P
To determine
Was the purchase of the fire insurance for the house is a mistake when at the end the house is not caught fire.
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Jeff is driving down the road. Jeff is texting, drinking a diet soda, and playing
with the radio. Ricardo is driving on the road in the opposite lane of traffic.
Ricardo is eating chicken wings and checking out a cute girl that is walking
on the sidewalk adjacent to the road. Jeff and Ricardo hit each other head
one. Jeff sustains $100,000 in damages. Ricardo sustains $10,000. It is
determined that Jeff was 75% at fault and Ricardo was 25% at fault. Under a
contributory negligence statute, what is Ricardo's possible recovery from Jeff
for his injuries?
O A. $25,000
B. $2,500
O C. s0
O D. $10,000
Auto insurance can protect you while you are walking on the street or riding a bicycle.
True or False
Suppose you are in charge of snow removal in your community and you are trying to figure out if you should clear snow on a street. You survey the 20 people that live on that street who say they they each value having snow cleared on their street at $50 per year. The snow removal only costs $600 per year so you hire a snow plow and clear the snow that winter. When you ask for donations to pay for the snow removal you only receive $80. What does this result show?
a
The people on that street were free-riders.
b
The snow removal suffered from the Tragedy of the Commons problems.
c
The snow removal cost must have been greater than their economic benefit.
d
You must have overestimated the value of a fireworks show.
Please suggest me right answer with explanation
Chapter 17 Solutions
Principles of Economics (12th Edition)
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