The error in the behavior.

Question

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Answer 1

Question

Chapter 8, Problem 1DQ

To determine

The error in the behavior.

Expert Solution & Answer

Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.

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Students have asked these similar questions

One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar amounts. As an example, Samir is willing to drive 20 minutes out of his way to save $4 on a grocery item that costs $10 at a local market. But he is unwilling to drive 20 minutes out of his way to save $10 on a laptop that costs $400 at a local store. In percentage terms, how big is the savings on the grocery item? On the laptop? In absolute terms, how big is the savings on the grocery item? On the laptop? If Samir is willing to sacrifice 20 minutes of his time to save $4 in one case, shouldn't he also be willing to sacrifice 20 minutes of his time to save $10?

2. The effect of impatience on consumer choices Suppose the Super Bowl is this week, and Sean is in need of a television to watch the big game. As a college student, Sean knows that he can either buy his flat-screen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help determine which decision is better for Sean. Throughout the question, assume that Sean pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finally, assume the goods are identical, and there's no cost to gaining information about prices-in other words, he knows the best price online and in the store without having to search. Suppose Sean receives a utility of 70.90…

Ronald is an Economics students who likes to spend his leisure time of sixty hours a month doingone of two activities: watching movies at Dendy Cinemas Newtown (x), and indoor-climbing(y). A trip to the movies takes 3 hours, and each visit to the climbing gym lasts 5 hours.Further, suppose that Ronald has a fixed monthly monetary budget to spend on leisure activities. He currently exhausts this entire budget by watching two movies and visiting the climbinggym fifteen times. With this monthly budget, he would also have been able to afford exactlyseven movies and six visits to the climbing gym.Assume that both goods are perfectly divisible.(b) Show, using algebra, that Ronald’s two budget lines intersect at the bundle (x, y) =(5.5, 8.7).

Answer 2

Question

Chapter 8, Problem 1DQ

To determine

The error in the behavior.

Expert Solution & Answer

Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.

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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 8, Problem 1DQ

To determine

The error in the behavior.

Expert Solution & Answer

Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.

Want to see more full solutions like this?

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

Answer 4

Question

Chapter 8, Problem 1DQ

To determine

The error in the behavior.

Expert Solution & Answer

Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.

Want to see more full solutions like this?

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

Answer 5

Chapter 8, Problem 1DQ

To determine

The error in the behavior.

Expert Solution & Answer

Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.

Answer 6

Chapter 8, Problem 1DQ

To determine

The error in the behavior.

Expert Solution & Answer

Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.

Answer 7

Chapter 8, Problem 1DQ

To determine

The error in the behavior.

Answer 8

Expert Solution & Answer

Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.

Answer 12

Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Prob. 8DQ Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

The error in the behavior.

The error in the behavior.

Explanation of Solution

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