Bob and Tom live in a university dorm. Bob values playing loud music at a value of$100. Tom values peace and quiet at a value of$150.Which of the following statements is true? a. It is efficient for Bob to continue to play loud music. b. It is efficient for Bob to stop playing loud music only if Tom has the property right to peace and quiet. c. It is efficient for Bob to stop playing loud music only if Bob has the property right to play loud music. d. It is efficient for Bob to stop playing loud music regardless of who has the property right to the level of sound.

Bob and Tom live in a university dorm. Bob values playing loud music at a value of$100. Tom values peace and quiet at a value of$150.Which of the following statements is true? a. It is efficient for Bob to continue to play loud music. b. It is efficient for Bob to stop playing loud music only if Tom has the property right to peace and quiet. c. It is efficient for Bob to stop playing loud music only if Bob has the property right to play loud music. d. It is efficient for Bob to stop playing loud music regardless of who has the property right to the level of sound.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter19: Using Economics To Understand The World Around You

Section: Chapter Questions

Problem 4E

See similar textbooks

Similar questions

Person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted to good b yields 2 units whereas each hour devoted to good A produces 4 units. (a) State whether 9 units of good B and 12 units of good A are attainable, unattainable, efficient or inefficient (b) Person 2 can produce 3 units of good B and 4 units of good A per hour. (I) who has absolute advantage oil production of good B?(ii) who has absolute advantage in the production of good A?(iii)calculate the opportunity cost for good B for person 2 (iv) calculate the opportunity cost for good A for person 1 (v) who has the comparative advantage in the production of good B?(vi) who has the comparative advantage in the production of good A ?
If libertarianism rejects intrinsic value of people, animals, and the environment, is this a good reason to reject libertarianism?
what are 2 assumptions that underline the conclusion that free market are efficient?
Define social benefit.
An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit of labour can produce either 1unit of X or 4units of Y (or linear combination of the two).A unit of capital can produce either 4units of X or 1unit of Y (or linear combination of the two)there are 100units of each means of production. (i) Draw the production possibility frontier of the economy when the two goods can only be produced by a mixture of both factors. (ii)What will be the opportunity cost of X if the economy produces 50units of X ? (iii) Given that the production technology is linear ,will the opportunity cost of X remain unchanged when we produce 90units of X ? (iv)Briefly explain the difference between the PPC with a constant opportunity cost and the PPC with an increasing opportunity cost as more output of one good is produced. Use a well labeled diagram to explain your answer?
Q. Even though everyone values clean air and wishes to breathe clean air, environmentalists and a large number of city dwellers would say that Canadian cities have excessive air pollution. Explain why, if left to the free-market system, the problem of excessive air pollution would not be solved? Name another problem that would not be solved, if left to the free-market system
A benevolent social planner (one who cares about society) would prefer that the output of good x be increased from its current level if, at the current level of output of good x, A) social cost > private value = social value > private cost. B) social value = private cost = social cost > private value. C) social value = private value = private cost < social cost. D) social cost = private cost = private value < social value.
Whenever we think of a resource, say forest, the value that immediately comes to our mind is the utility that we drive directly from the resource, such as timber. However as environmental scientist, we know that a forest has other values other than direct use value of economic value of a resource. Enumerate the types of economic values and discuss the various uses or utility of a protected coral reef area like the Tubbataha reef or protected forest like Mt. Makiling or Mt. Apo (Discuss only one).
You participate in a taste test for a new protein supplement called "Kapow." You are given five consecutive one ounce vials of the supplement and after consuming each vial you are asked to note your reaction. You consume the first vial and your response is: "Hmmm, quite good!" After the second, you say, "Not bad at all." After the third, you note, "It's alright." and after the fourth you wince, "No more, the after-taste is getting to me. I need water." What economic principle does this scenario illustrate? Define the principle.
Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor: A: Which country is capital abundant and which one is labor abundant? Explain! Now suppose the production one unit of good X requires 3 units of capital and 2 units of labor and the production of one unit of good Y requires 6 units of capital and 3 units of labor. B: Which good is the capital intensive good and which one is the labor intensive good? Explain!! C: Which country should specialize in and export good X and which country should specialize in and export good Y. Explain!!! D: Using appropriate graphs, demonstrate that trade is beneficial if two countries have identical technology but different preferences. Does a country specialize in producing the good where they have the strongest preference? Explain DO D Foe answers for A, B and C -…
Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor: A: Which country is capital abundant and which one is labor abundant? Explain! Now suppose the production one unit of good X requires 3 units of capital and 2 units of labor and the production of one unit of good Y requires 6 units of capital and 3 units of labor. B: Which good is the capital intensive good and which one is the labor intensive good? Explain!! C: Which country should specialize in and export good X and which country should specialize in and export good Y. Explain!!! D: Using appropriate graphs, demonstrate that trade is beneficial if two countries have identical technology but different preferences. Does a country specialize in producing the good where they have the strongest preference? Explain
Using Production Possibilities Curve (PPC), identify the trade-off between public and private goods. What is the opportunity cost if more allocation is needed for the provision of public goods?