GDP and the sale of a used car.

Question

(c) Assume an infinite horizon, continuous time and certainty. Furthermore, assume an additively separable utility function in consumption C and pollution stock S so that, U(C,S) = u(C) + v(S), where uc > 0; Ucc 0. Note that the first derivative, and the second subscript denotes the second derivative. The evolution of the pollution stock S over time is a function of consumption, decay rate of the stock of pollution & and abatement through the function, g(S) with gs > 0 and 9ss < 0. Time subscripts are ignored for ease of notation. Show that in the case of a stock pollutant, the marginal utility of consumption should equal the present value of disutility associated with the pollution stock. Interpret the condition.

Answer 1

Question

Chapter 5, Problem 12SQP

(a):

To determine

GDP and the sale of a used car.

(b):

To determine

GDP and the family meal cooked.

(c):

To determine

GDP and the interest on bonds.

(d):

To determine

GDP and the purchase of shares.

(e):

To determine

GDP and the welfare payment.

(f):

To determine

GDP and the commission earned on the resale of house.

(g):

To determine

GDP and the interest paid on government bonds.

(h):

To determine

GDP and the air and water pollution.

(i):

To determine

GDP and the legalized gambling.

(j):

To determine

GDP and the social security payments.

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(c) Assume an infinite horizon, continuous time and certainty. Furthermore, assume an additively separable utility function in consumption C and pollution stock S so that, U(C,S) = u(C) + v(S), where uc > 0; Ucc 0. Note that the first derivative, and the second subscript denotes the second derivative. The evolution of the pollution stock S over time is a function of consumption, decay rate of the stock of pollution & and abatement through the function, g(S) with gs > 0 and 9ss < 0. Time subscripts are ignored for ease of notation. Show that in the case of a stock pollutant, the marginal utility of consumption should equal the present value of disutility associated with the pollution stock. Interpret the condition.

Q3/for a closed loop system whose block diagram is shown in the figure determine the values of K and t such that the maximum overshoot to the unit step input is 25% and time to peak is 2 sec K 1+TS $2

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…

Answer 2

Question

Chapter 5, Problem 12SQP

(a):

To determine

GDP and the sale of a used car.

(b):

To determine

GDP and the family meal cooked.

(c):

To determine

GDP and the interest on bonds.

(d):

To determine

GDP and the purchase of shares.

(e):

To determine

GDP and the welfare payment.

(f):

To determine

GDP and the commission earned on the resale of house.

(g):

To determine

GDP and the interest paid on government bonds.

(h):

To determine

GDP and the air and water pollution.

(i):

To determine

GDP and the legalized gambling.

(j):

To determine

GDP and the social security payments.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 12SQP

(a):

To determine

GDP and the sale of a used car.

(b):

To determine

GDP and the family meal cooked.

(c):

To determine

GDP and the interest on bonds.

(d):

To determine

GDP and the purchase of shares.

(e):

To determine

GDP and the welfare payment.

(f):

To determine

GDP and the commission earned on the resale of house.

(g):

To determine

GDP and the interest paid on government bonds.

(h):

To determine

GDP and the air and water pollution.

(i):

To determine

GDP and the legalized gambling.

(j):

To determine

GDP and the social security payments.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 12SQP

(a):

To determine

GDP and the sale of a used car.

(b):

To determine

GDP and the family meal cooked.

(c):

To determine

GDP and the interest on bonds.

(d):

To determine

GDP and the purchase of shares.

(e):

To determine

GDP and the welfare payment.

(f):

To determine

GDP and the commission earned on the resale of house.

(g):

To determine

GDP and the interest paid on government bonds.

(h):

To determine

GDP and the air and water pollution.

(i):

To determine

GDP and the legalized gambling.

(j):

To determine

GDP and the social security payments.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 12SQP

(a):

To determine

GDP and the sale of a used car.

(b):

To determine

GDP and the family meal cooked.

(c):

To determine

GDP and the interest on bonds.

(d):

To determine

GDP and the purchase of shares.

(e):

To determine

GDP and the welfare payment.

(f):

To determine

GDP and the commission earned on the resale of house.

(g):

To determine

GDP and the interest paid on government bonds.

(h):

To determine

GDP and the air and water pollution.

(i):

To determine

GDP and the legalized gambling.

(j):

To determine

GDP and the social security payments.

Answer 6

Chapter 5, Problem 12SQP

(a):

To determine

GDP and the sale of a used car.

Answer 7

Chapter 5, Problem 12SQP

(a):

To determine

GDP and the sale of a used car.

Answer 8

(b):

To determine

GDP and the family meal cooked.

Answer 9

(b):

To determine

GDP and the family meal cooked.

Answer 10

(c):

To determine

GDP and the interest on bonds.

Answer 11

(c):

To determine

GDP and the interest on bonds.

Answer 12

(d):

To determine

GDP and the purchase of shares.

Answer 13

(d):

To determine

GDP and the purchase of shares.

Answer 14

(e):

To determine

GDP and the welfare payment.

Answer 15

(e):

To determine

GDP and the welfare payment.

Answer 16

(f):

To determine

GDP and the commission earned on the resale of house.

Answer 17

(f):

To determine

GDP and the commission earned on the resale of house.

Answer 18

(g):

To determine

GDP and the interest paid on government bonds.

Answer 19

(g):

To determine

GDP and the interest paid on government bonds.

Answer 20

(h):

To determine

GDP and the air and water pollution.

Answer 21

(h):

To determine

GDP and the air and water pollution.

Answer 22

(i):

To determine

GDP and the legalized gambling.

Answer 23

(i):

To determine

GDP and the legalized gambling.

Answer 24

(j):

To determine

GDP and the social security payments.

Answer 25

(j):

To determine

GDP and the social security payments.

Answer 26

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Answer 27

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Answer 31

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Answer 37

Ch. 5.6 - Prob. 1YTE Ch. 5 - Prob. 1SQP Ch. 5 - Prob. 2SQP Ch. 5 - Prob. 3SQP Ch. 5 - Prob. 4SQP Ch. 5 - Prob. 5SQP Ch. 5 - Prob. 6SQP Ch. 5 - Prob. 7SQP Ch. 5 - Prob. 8SQP Ch. 5 - Prob. 9SQP

GDP and the sale of a used car.

Solution Summary: The author explains that GDP is the sum total of money value of all the final goods and services produced within the political boundary of an economy.

GDP and the sale of a used car.

GDP and the family meal cooked.

GDP and the interest on bonds.

GDP and the purchase of shares.

GDP and the welfare payment.

GDP and the commission earned on the resale of house.

GDP and the interest paid on government bonds.

GDP and the air and water pollution.

GDP and the legalized gambling.

GDP and the social security payments.

Chapter 5 Solutions